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EcommerceBytes-NewsFlash, Number 265 - February 26, 2002 - ISSN 1539-5065    1 of 4

Latest Online Auction Related Scam: Bogus PayPal Lawsuit Sites

By Ina Steiner
February 26, 2002

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Jacoby&Meyers filed a nationwide class action lawsuit against PayPal on February 20th alleging improper restriction and administration of customer accounts. The law firm is now seeking an emergency order concerning the growing number of "angry consumer" Web sites providing information about the consumer lawsuit.

The class action lawsuit against PayPal alleges an aggressive and overly broad anti-fraud policy that caused erroneous and wrongful restrictions on user accounts, and that the company deliberately conceals from customers important contract information about consumer service and account restrictions.

Jacoby&Meyers says its Web site http://www.JacobyLawyers.com has been flooded with emails about frozen PayPal accounts. But Some Web sites that have sprung up to discuss the case suggest that consumers "direct all class action questions here," and one is actually charging for information about the class action lawsuit. (I wonder if they accept PayPal.)

Jacoby&Meyers is seeking an emergency order from the California Superior Court directing Web site operators to refrain from suggesting any affiliation with the class action lawsuit. Jacoby&Meyers has asked for an emergency order to avoid confusion and to prevent any broadcast of misleading information about the lawsuit.

"Some PayPal consumers feel they have been misled once, and we want make every effort to make sure they are not misled a second time," said Gail Koff, managing partner and co-founder of Jacoby&Meyers.

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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