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A TN judge believes Consumer Depots auctions were deceptive. In Jan 2010, Judge Amanda McClendon granted a motion for summary judgment, thus denying Consumer Depot the opportunity to present its case to a jury. Consumer Depot believes it has done nothing wrong.
Consumer Depot disagrees and believes that the large volume of complaints were the result of eBay buyers who didn't read and a smear campaign against them.
After its largest competitor appeared on a TV News segment criticizing Consumer Depot, the TN Attorney General filed a lawsuit against Consumer Depot claiming it had violated the Tennessee Consumer Protection Act.
In 2006, Judge Marietta Shipley declined to issue an injunction against Consumer Depot, saying Consumer Depot "is operating within a very volatile hearsay environment. There is some evidence that at least one group is attempting to advertise Consumer Depot's negative feedback in a rather heavy handed way". (see more)
Olha Rybakoff, a former member of the Delaware Consumer Protection Division continued to press the case in spite of the overwhelming volume of happy customers.
Consumer Depot followed the explosive growth of selling on the internet and eBay. During their peak, Consumer Depot was selling up to 30,000 auctions per month. Automated software posted auctions for inventory ranging in quality from NEW to DEFECTIVE. Consumer Depot used several eBay user ID's to segregate these items. By 2005, Consumer Depot was the 6th largest eBay seller in the world, based on the Nortica 500 rankings. The Nashville electronics liquidator began selling liquidated electronics and computers in 1995.
The rapid growth of internet also caused a change in some consumer behavior. With a few keystrokes, less than honest individuals can file online complaints or post negative comments at any number of websites. Some internet users are emboldened by anonymity and are empowered to lie.
Consumer Depot was the target of internet vigilantes who created hate sites and used eBay to attack the company. A coordinated campaign was begun to file online complaints, email eBay customers and leave derogatory feedback even without purchasing the items. Messages were sent to eBay buyers before they paid for their auctions urging them to file complaints with the State.
After selling well over 1 million auctions on eBay, Consumer Depot has received roughly 620,000 positive feedback comments on eBay compared to 27,000. This 98% positive rating is in spite of negative feedback comments from users who never paid for the items which eBay allows.
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