Yahoo Japan sued in class action over Internet auction scams

0 Comments | AFP, April, 2005

TOKYO (AFP) — Yahoo Japan Corp. has been sued by customers for scams on its site in the nation's first class-action suit seeking compensation from an online auction broker, plaintiffs said.

A total of 572 people across Japan paid via Yahoo for auctioned items such as liquid-crystal televisions and digital cameras but did not receive the goods, said Noboru Mizuno, who leads the group.

"Yahoo continued to let things happen while knowing about the fraud," Mizuno told AFP.

The group has taken the case to Nagoya District Court, demanding a total of 115.6 million yen (one million dollars) in damages.

"Yahoo holds an obligation as a broker to help execute deals smoothly," said Yoshiaki Suzuki, a lawyer for the plaintiffs.

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