eBay Hit with Lawsuit Over Coin Listing Policy
A lawsuit was filed Jan. 10, 2008 against eBay, the American Numismatic Association (ANA) and the Professional Numismatists Guild (PNG) for defamation and unfair and deceptive trade practices.
The suit was filed in United States District Court for the Middle District of Florida by National Numismatic Certification, LLC (NNC), ASA Accugrade, Inc (ACG), PCI Coin Grading, Inc (PCI), Treasure Gallery, Inc., Sovereign Entities Grading Service, Inc.(SEGS) and Centsles, Inc. The suit seeks damages:
" … in excess of $75,000.00, exclusive of costs, interest and attorney’s fees and for temporary and permanent injunction relief …"
At the root of the suit, eBay’s policy change limiting the listing of coins as certified
eBay’s policy page on selling currency sets out the requirements in listing coins or paper money. Key aspects outlined on the page are prohibiting counterfeit sales and providing full disclosure on anything that could affect a listing’s value. This policy and elements surrounding an update and announcement to it were driving forces in the lawsuit.
In Sept. 2007, eBay updated their policy for selling coins. eBay limited the listing of coins as certified to those coins that had been graded by these, and only these, selected grading companies:
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Numismatic Guaranty Corporation (NGC)
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Numismatic Conservation Services (NCS)
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Professional Coin Grading Service (PCGS)
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Independent Coin Grading (ICG)
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ANACS
The plaintiffs complaints in the suit are directed toward claimed construction mechanisms of eBay’s udpated policy, the way it was stated and the ANA press release announcing eBay’s policy change. They claim actions essentially branded their graded coins as "counterfeit" and/or their companies as dealing in counterfeit items. In specific regards to the ANA press release, the plaintiffs say they:
“… have been injured in their respective abilities to carry out their professions, trades, and occupations and have been exposed to distrust, hatred, contempt and ridicule … As a direct and proximate result of said defamatory conduct, Plaintiff have lost considerable income and profits and their goodwill has suffered immensely …"
The lawsuit seeks a trial by jury in federal court.
Full Legal Filing
For precise legal information, the entirety of the filed lawsuit may be read here:
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March 19th, 2008 at 12:03 pm
Whenever th slab is opened by a fingernail or a coin so easily as are so many by SEGS and GCGS, one must question the grade of the coin inside. Is it possible that a coin graded MS-70 or PR-70 inside a slab that when dropped is exposed to the elements or worse falls out of the protective capsule completely, that the coin can be considered “perfect. I say no! The slab must be sealed, securely -period! There can be no questions. Anytime there is a question, the confidence in the company which grades the coin comes into question. I fail to see why there is any arguement over the need for a securely slabbed coin. Either the coin is sealed or it cannot be considered the grade claimed. Once sealed, let th experts scratch their heads. Trust, the issue at hand, is something that must be earned and constantly proven. Without trust, all coins are suspect. ALL Coins!
Rob Barry
March 20th, 2008 at 11:37 pm
In Response to Mr. Rob Barry’s post. SEGS capsules are the most difficult to open in the entire industry. You need a hammer and an anvil or a drill. You must be thinking of SGS, Star grading service, located in Ohio. They have “bubble gum” type capsules and a gold seal at the top of each capsule. If you opened a SEGS capsule with your fingernail then it was never sealed. You are absolutely correct the “seal” is of the utmost importance. The act of having your coin graded and encapsulated is nullified if the coin is not secured… a waste of time and money.
June 18th, 2008 at 4:55 am
On the PCGS.com message board, this 1909-S Lincoln is the subject of “guess the grade”
http://i265.photobucket.com/albums/ii225/arizonajack/1909sp009copy.jpg
The vast majority of members guessed slider AU55/AU58. It was revealed by the owner to
have been graded MS63 red/brown by PCGS.
OBVIOUS very light wear…dullness in the open fields, color difference on the high points..all of the
diagnostics of “how to tell the difference between slider and true Mint State” as taught at the ANA
grading summer seminar.
But it meets the philosophy of “market grading.” Flashy, a better date, slight rub, but “the market
dictates an Uncirculated price, not an AU price” (from the PCGS grading guide.)
Ironically, such coin would have been called AU58 by both PCI and SEGS, which are banned by ebay.
But while the vast majority of members here recognize that the coin is slightly worn, they nonetheless
congratulate the owner for getting an MS63 grade.