Facts

Custom LED filed a class action against eBay Inc., based on allegations related to eBay's "Featured Plus!" listings. eBay is an online marketplace that allows sellers to list items for sale. Before listing an item, however, sellers must agree to eBay's "User Agreement," and agree to fee schedules. An optional listing upgrade to sellers is called Featured Plus! and costs up to $39.95 per listing. A Featured Plus! listing will lead to an item being displayed more prominently on a search results list page.

PLAINTIFF'S CONTENTIONS:
Custom LED argued that the language in eBay's Featured Plus! service was misleading, and that eBay promised to display any Featured Plus! listings at the top of search lists. Instead, Custom LED claimed that eBay failed to do this, and would only display Featured Plus! listings at the top of search lists if certain conditions were met.

Result

The court dismissed Custom LED's claims for fraud and deceit, unjust enrichment, and declaratory judgment. It also dismissed Custom LED's claims against eBay Europe and eBay International. The remaining claims were for breach of contract, unfair competition, and false advertising. The parties then settled those remaining claims for $4.75 million.