eBay’s Bidding System Does Not Violate California’s Unfair Competition Laws.

Plaintiff filed a class action against eBay, alleging violation of California’s unfair competition laws and intentional interference with prospective business advantage. The federal district court dismissed the case. eBay uses an auction system whereby the bidder submits the maximum amount he is willing to pay and eBay’s software enters bids on behalf of the bidder at predetermined increments above the current bid, until the user wins the auction or would need to exceed his maximum. Plaintiff contended eBay’s automatic bidding system violates two provisions in eBay’s User Agreement. With regard to the first user provision [“We are not involved in the actual transaction between buyers and sellers.”], the Ninth Circuit stated: “We conclude that the provision can be plausibly read only as a general description of eBay’s services intended to focus the user on the Limitation of Liability section.” As to the second user provision at issue [“No agency, partnership, joint venture, employee-employer or franchiser franchisee relationship is intended or created by this agreement.”], the Ninth Circuit stated the statement is not part of the User Agreement, and, therefore, not made in the contractual context. Dismissal was affirmed. (Block v. eBay (Ninth Cir.; April 1, 2014)747 F.3d 1135.)