A California federal judge has refused to dismiss a putative class action against San Jose-based eBay Inc. that seeks refunds for sellers who claim they were misled by the online auction company’s removal policy for fixed-price listings that end early without completion of a sale.

Judge Edward Davila of the U.S. District Court for the Northern District of California in San Jose denied eBay’s motion to dismiss the lawsuit, finding that the named plaintiff showed “that members of the public are likely to be deceived” by eBay’s user agreement.

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