eBay was sued by its own collection agency on Friday. eBay hired IC System, Inc. to go after delinquent accounts, but it claims eBay provided inaccurate customer data that got it into legal trouble.
According to IC System’s legal complaint, it pursued an account based on information provided by eBay who was found not to be an eBay customer at all who then turned around and sued it:
“On December 14, 2012, a putative class action was filed in the United States District Court for Arizona captioned Michael Reid v. I.C. System, Inc., Court File No. 12-cv-02661-ROS (hereinafter “Reid Matter.”).
“The named plaintiff, Michael Reid, was called by ICS in its efforts to collect on a past due eBay seller account using a cell phone number supplied as Customer Information provided to ICS by eBay.
“Unfortunately, Mr. Reid did not have any account with eBay and had not provided his cell phone number to ICS, eBay, or otherwise consented to be called on his cell phone.”
The collection agency’s complaint for breach of contract further alleged:
“The lack of accuracy in the Customer Information provided by eBay to ICS was a breach of a material term of the Collection Contract and triggered a duty on behalf of Defendant to defend and indemnify Plaintiff.
“ICS made renewed requests for defense and indemnification during the course of the Reid Matter litigation, but eBay refused to defend or indemnify ICS in the Reid Matter.”
The case is “IC System, Inc. v. eBay, Inc.” filed in the Northern California District Court on April 17, 2020, Case # 5:20-cv-02667.