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eBay Loses Millions in Ad Revenue in Alleged Fraud

eBay said it lost millions of dollars in ad revenue, according to the Australian. The newspaper said eBay filed a lawsuit against its former manager of ad operations and two of his associates.

eBay alleges that the manager set up companies and appointed them to sell advertising space on eBay’s site and in its email newsletters.

“eBay claims they wrongfully profited by telling eBay they had sold the inventory at a particular rate while actually selling it for more, and pocketing the difference,” the newspaper wrote. “Also involved in the alleged schemes was the ad trafficking firm Ms Joab founded, called Media Minds, which facilitated the transactions, eBay contends.”

The lawsuit alleges that Vistaprint paid a higher amount to eBay’s agents for advertising than the price that appeared on eBay-issued invoices – and, the Australian wrote, “Highly embarrassing to eBay is that some of the alleged schemes continued for three years before they were detected.”

Read more about the eBay lawsuit and allegations in this article on TheAustralian.com.

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Ina Steiner
Ina Steiner
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.