An arbitration complaint has been filed against live shopping marketplace Whatnot.
The complaint alleges the e-commerce platform acts as an "unregulated online casino" and is structured to "harm" the consumer.
Additionally, the complaint alleges charges of racketeering.
The plaintiffs' lawyer, Paul Lesko, explains to cllct why his clients are seeking action against Whatnot.
Whatnot declined to speak on camera, but provided the following statement in regard to the allegations:
We absolutely reject the characterization in this complaint. Gambling isn't allowed on Whatnot, and we strictly enforce this policy.
Whatnot is a commerce platform built to support small businesses, connecting them with buyers who purchase products they love. Card Breaks are a long-standing format in collecting — at card shops, conventions, and in communities that have thrived for generations. And while sellers who “break” only make up 4% of sellers on our platform, we've taken care to bring that experience online in a way that holds everyone accountable.
Whatnot shows happen live and on camera. Sellers face real consequences when they break our rules. We've set the standard for how these formats work online, and we’re committed to maintaining it.