EBay purchases aren't covered under California consumer protection laws, court says
The U.S. 9th Circuit Court of Appeals rules that online sellers who don't specifically aim to sell to Californians are not subject to state law.
California consumers are not protected by the state's consumer protection laws when something they buy on EBay turns out to be less than advertised, a federal appeals court ruled today.
In the latest judicial message of "buyer beware" in Internet shopping, the U.S. 9th Circuit Court of Appeals said a federal district court in Northern California properly decided it didn't have jurisdiction to require a Wisconsin classic car seller to abide by this state's consumer protection laws.
The dispute began three years ago when Paul Boschetto of San Francisco offered the winning $34,106 bid for a 1964 Ford Galaxie 500 XL auctioned by Wisconsin sellers who described the vehicle in their EBay ad as "in awesome condition, not restored, rust free chrome in excellent condition, recently rebuilt and ready to be driven."
When the car arrived, according to Boschetto's testimony to the federal district court, the engine wouldn't start and the car was rusty and dented.
Boschetto contacted EBay and Hansing in a fruitless effort to rescind the purchase, then filed suit in federal district court alleging violation of the California Consumer Protection Act, breach of contract, misrepresentation and fraud.
The defendants filed a motion with the U.S. District Court for Northern California for dismissal, arguing that the court lacked jurisdiction over an out-of-state seller. The court agreed and dismissed the case in July 2006.
In reviewing Boschetto's appeal, a three-judge panel of the 9th Circuit ruled that since the sellers weren't specifically aiming to sell to Californians, the transaction was not subject to state law.
Circuit Judge Betty Binns Fletcher wrote for the panel that the mere fact that Boschetto was in California was insufficient "to establish jurisdiction over a nonresident defendant." Judge Pamela Ann Rymer, in a concurring opinion, added that "something more" has to be involved, such as individually targeting residents of a particular state, for a seller to be subject to the laws of that state.
The appeals court's decision was in line with other recent federal rulings that suggest the courts don't want to step in and police Internet commerce. Last month, a federal judge in New York declined to order EBay administrators to ensure that counterfeit luxury items, such as knockoffs of Tiffany jewelry, aren't sold on their site in violation of copyright protections.
In a landmark decision more than a decade ago, the 9th Circuit ruled that it wouldn't apply "traditional notions of fair play and substantial justice" in claiming jurisdiction over Internet commerce in which the only connection to a state's legal framework was that the sales website was accessible to that state's consumers.
carol.williams@latimes.com
