eBay backs down on PayPal mandate

eBay backs down on PayPal mandate

Summary: eBay yesterday withdrew its mandate that customers exclusively use PayPal. The auction site's decision came just weeks before consumer watchdog the ACCC was due to pass judgement on its decision.


eBay yesterday withdrew its mandate that customers exclusively use PayPal. The auction site's decision came just weeks before consumer watchdog the ACCC was due to pass judgement on its decision.

The ACCC was due to make its final decision on 15 July.

While eBay has previously said in a statement that it "believes the consumer benefits of this initiative are worth fighting for on behalf of its buyers", the company's vice president Simon Smith today said a fight with the ACCC was not in the interest of its customers.

"When we looked at the difference between us and the ACCC ... we realised that it was not really in the interest of the marketplace to continue with what may have become a long and drawn out process," Smith told ZDNet.com.au.

The online auction site notified the Australian Competition and Consumer Commission (ACCC) in April that it intended to enter into an exclusivity deal with PayPal, omitting most other payment methods for customers from 17 June. This prompted the regulator to issue a call for submissions from the public and industry on the proposed move.

Several high profile organisations registered their concern about the deal, including the Australian Bankers Association (ABA), Reserve Bank of Australia (RBA), and the Australian Securities and Investments Commission (ASIC). An anonymous submission was also lodged, which was later revealed to have come from Google.

eBay hit back at its critics, with Smith saying that the move was in the interest of its users.

"When we looked at what drove a bad buyer experience on eBay, we found that how [buyers] paid for their item was a very important factor. When buyers paid with PayPal, they were four times less likely to enter into a dispute," said Smith.

Although Smith declined to say what percentage of eBay transactions were made through PayPal, he noted that the number of PayPal accounts was roughly equal to the number of eBay users.

eBay will continue to mandate that sellers offer PayPal as a payment option.

Topics: Google, E-Commerce, Government, Government AU, Tech Industry

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  • People power won the battle, but the war is not over

    "eBay will continue to mandate that sellers offer PayPal as a payment option."

    Surely this is illegal????

    The ACCC says: "Third line forcing is a specific form of exclusive dealing prohibited outright by the Trade Practices Act. It is not subject to the substantial lessening of competition test. It involves the supply of goods or services on condition that the purchaser buys goods or services from a particular third party, or a refusal to supply because the purchaser will not agree to that condition." (http://www.accc.gov.au/content/index.phtml/itemId/816377)

    eBay is forcing sellers to acquire financial services from a third party (PayPal) as a condition of listing and refusing to allow listings if you do not sign up to PayPal.
  • Still not happy, eBay!!!!!

    I will NOT be using eBay until it stops forcing sellers to offer PayPal (whether they want to or not) and reverses the monumentally stupid changes to feedback.

    We should all get behind OZtion (www.oztion.com.au). It's Australian and it's cheaper than eBay!
  • alternative auction sites!

    I don’t have any reason to go back to ebay, this paypal ordeal made me search for alternatives and im actually glad I did. One site to watch is www.smartbid.com.au - that’s a real ebay competitor, I see them being THE Australian online market place in a few years and ebay going bust due to another stupid money grabbing stunt such as this!

    Ebay is old news! There are other auction sites online - Smart Bid Auctions is now open, $5 seller registration and verification and you can sell as many items as you want for the life time of your membership. A lot more trustworthy than fleebay – who knows what spin they will try and put on us all next if we go back? The fees are bound to go higher on ebay due to the blow out of profit they would have received from this silly little adventure.
  • time to look elsewhere,its too late ebay

    Ebay Sellers still have to offer paypal as a payment option on all of their listings, ebay sellers can not leave feedback for buyers, ebay sellers still have to put up with all the ridiculous ebay fees. Im currently selling successfully on another new site (Smart Bid Auctions) which has popped up almost overnight, and is the great alternative that I think all Australians have been searching for.
  • Other aussie support

    I already cancelled my ebay membership in discust, after 7 years selling and over 1500 feedback. I have previously tried oztion, but had no success selling and signed up for Smart Bid when it opened 2 days ago. Looks great and a few hundred members already, things are looking bright because its time ebay got the replacement they deserve.
  • Ebays lost touch

    This paypal hitch proved to all Australians that ebay has obviously lost touch with its consumers. Now we have all had a taste of life without ebay � we�ve all seen that there is no need to go back. Especially when there are other alternatives, the stand out being Smart Bid Auctions. Good one ebay, you�ve lost us for good!
  • Smart Bid is a wannabe

    Smart Bid is only FOUR DAYS OLD! You can't possibly see it was a real competitor when it only has 250 members. OZtion (www.ozation.com.au) has nearly 300,000 members.
  • Go OZtion!

    Smart Bid is a wannabe. Stick with OZtion (www.oztion.com.au). It's Australian, it's cheaper than eBay and is the only real competitor to eBay.
  • Get real!

    How can you be selling successfully when it's only been open for FOUR DAYS and only has 200 members?????
  • Smart Bid are spammers

    Smart Bid is nothing. A wanna be. A THREE DAY OLD heap of shite. Nothing can be a stand out after onlt 3 days!
  • I though Paypal was the prob?

    Guy's if paypal is the problem why is smartbid even mentioned in the comments? it offers paypal too. Sure forcing paypal onto every ebay member was a stupid thought and shouldn't be allowed but if you are that much against paypal why use sites that support it. I like ebay but it's just a little stupid and greedy.



    OK, tell me if this is all, just a coincidence.

    The 2 girls, on these 2 message board threads:




    Received fake/knock off items, bought from Ebay. Both were told to send the items to the following address, where they would be ''destroyed''.

    Paypal Returns
    12750 Perimeter Drive Suite 154
    Dallas TX 75228

    One girl asked, since it was being destroyed, could they write ''FAKE'' all over it, just so that it was never resold. They were told ''NO'', that it MUST be in the same condition, as it came.

    One of the girls happened to look up the address and realized that it belonged to a company named, Liquidity Services Inc.
    Liquidity Services inc., is a business surplus reseller. Is ebay giving these buyers a refund, from the sellers account and then taking over ownership of the item and reselling it, for profit, when it is supposed to be destroyed? The website that this company resells from is called http://www.liquidation.com/index.html

    This is an email, that one girl got from Paypal, when she filed her claim:


    A refund on this transaction will be awarded to you once the item, in its original condition, is shipped to the following address:

    PayPal Returns

    12750 Perimeter Dr Suite 154

    Dallas, TX 75228

    Attn: Buyer Protection Claims - #PP-************

    Make sure to include your case number in the address above.

    NOW I'M IN THAT PURSE BLOG AND THIS IS WHAT I POSTED (A question about her email):

    Dragonlady, where it says

    "Attn: Buyer Protection Claims - #PP-************"

    How many numbers, is that PP#? (this will be brought up, farther down)

    I was doing a little investigting last night. I went to liquidation.com and was just looking around. I did a blank search and chose the Dallas, TX location, since this is where Paypal is telling people to ship. I also chose ''returns'', for the item condition, to only bring up the returned items.

    I noticed several sellers, that sell a LOT of stuff there, so....

    On a whim, I decided to see if any of those names, matched up with ebay ID's and this is what I found.

    Liquidation.com Seller (Onlinereturns), There just happens to be an ebay seller named ''Onlinereturns''. Lets check their feedback, on toolhaus.org:


    Ok, that must just be a coincidence, this guy is selling FAKE stuff and is now naru'd (Not a registered user).


    Liquidation.com Seller (Techexcess) Wow, there is an ebay member, with the same name, as well. Let's check their feedback:

    http://toolhaus.org/cgi-bin/negs?User=techexcess Hmmm,

    Must be another coincidence, that this person is selling all kinds of used/broken junk! (Ebay returns?)

    Liquidation.com Seller (ReturnsManager) Out of a feedback score of 18, 10 of them were negs/neuts and they are now naru'd, from ripping people off:


    Are all these, just coincidental? Surely they wouldn't use the same name on ebay, would they?

    I then typed in Vuitton on the resellers website and chose Dallas as well and came up with this:


    If you click on the 4th title down, it takes you here:


    Click on the ''view manifest'' link, next to ''quantity in lot''.

    you will get this: http://www.liquidation.com/aucimg/1536/m1536075.html

    Notice to the fair right, under notes...what are these numbers? That per chance could
  • Continued

    not be the ''PayPal case #'' that they were TOLD to include, would it? No way, couldn't be. They would not be that stupid, would they?

    You can also look at each pic in the auction, by scrolling down and clicking ''view all photos''. I was looking at the pics and noticed a pen that is made by Mont Blanc. Just a little strange, because I remember seeing that name, somewhere...

    OOOOhhhh, it was here, the last negative by the seller ''OnlineReturns'', before he got naru'd...ok, please don't tell me that this pen, is the same pen and is just circling around and around.:


    I then found an article, where it says this:

    ''Because of its reliability with online resellers, Liquidity Services is ranked as Paypal's #1 bulk source for inventory"'


    You've got to be kidding me, right? Paypal promotes and sends sellers to Liquidity Services to buy in bulk/lots. The buyers of that junk/fakes, list on ebay. Those sellers are now selling fakes and junk and may not realize it. Paypal refunds the buyer, who purchased the fakes, out of the sellers account. Ebay keeps the sellers listing fees and the final value fees, which is a good amount on the high priced fake designer items. They then have the buyers ship the junk/fakes, BACK to Liquidity Services and then they RESELL it, again in lots, to the next sucker. He then in turn lists it on ebay, who takes the fees AGAIN and the circle just continues.

    This is their actual meaning of ''returns' on the liquisation.com website: "Returns were sold to a customer, who then either physically brought the item back to a store or mailed it to a specified location. Reasons for returning a product may not have any correlation to its usefulness."

    Heck, this sellers actual name is ''returnresale'' and ALL his items are from DALLAS, TX.


    Funny how they have a bunch of stuff and then throw in a pair of LV boots, guarantee they are fake!

    Another one, where they just throw in a LV product, with other junk:

    This one in barely advertised, just thrown in like the seller has no clue, what it is, making the buyer think they have a steal:

    This seller was found, after I typed all of the above. I did a search for Vuitton and left the location open. A different seller I noticed came up (Designersforless). Once again, just on a whim, I tried ebay, to see if that name had a match. Funny, there is a member named desingersforless on ebay. They last sold something on May 22, 2008, but before that, no sales back til November. Probably because their feedback was starting to look bad, from all the negs. So, 3 days AFTER the new policies came into affect, they must have noticed that their feedback jumped back up, from the new 12 month rule, where all your past history is wiped clean by ebay. Oh, great she says, let me start scamming again. This is the feedback, from what they listed:

    Item purchased was not an authentic RL Polo,bad quality.Seller refuses to refund.
    Reply by designersforless (May-23-08 13:21):
    Buyer unable to provide proof that shirt is not authenitic.

    This seller, has stuff up for sale now...are they all fake? This is a seller to watch and keep and eye on the feedback, to see if there are any more reported ''fakes''. If they sell fake stuff somewhere, they are more than likely going to do it again, somewhere else (Liquidation.com). This is what they have sold on liquidation.com and all are ''AS IS'', which means you are STUCK with it: http://www.liquidation.com/auction/search?cmd=seller&username=designersforless

    Are all these FAK
  • Continued

    Are all these FAKE returns, from ebay? Has anyone been asked to ship items, to a California address, where this person sells from? Found out later that YES, people have sent to CA, another location of Liquitity Services Inc.

    You can see by the following links, that loads of people are getting ripped of by this company (LSI), because all their lots are, AS IS. I guess they decided that ebay, wasn't working too good and people were noticing the fakes and getting refunds, so they start listing on liquidations.com and then no one can get refunds, because they are ''AS IS'':

    http://www.ripoffreport.com/searchresults.asp?q1=ALL&q4= &q6=&q3=&q2=&q7=&searchtype=0&submit2=Search%21&q5=liquidity+services




    We have now found sellers, who sold authentic items only to be told by the buyer, that it was fake. This one sellers states that the buyer, was an ebay employee????

    We really need to get someone to send something back and have it marked, to see if it comes back on ebay or if it's listed on liquidation.com, for resale after it was supposed to be destroyed.


    New ebay and paypal policies for sellers should clearly be declared illegal ,unfair,unethical and un American.Are ebay and paypal serious or have simply lost their mind?
    I say the way to end this once and for all, is to just take ebay and paypal to court,fine them,sue them and then shut them down once and for all,for the way they do business,It should be illegal.The have also needed to educated buyers about shipping costs and what the words BINDING CONTRACT means.Makes no difference what a sellers terms are, a buyer can violate most of them and get away with it.So much for seller protection..Give the key to a candy store to a child and they'll most likely eat to much candy.
  • PayPal Avoids Responsibilites?

    I would like to know why PayPal can charge a fee, yet not issue Tax Invoices? It claims to be an off-shore entity, thus does not collect nor charge GST, yet they have a office in Sydney. Should they not be responsible for the GST just like we are? I would like Monthly Tax Invoices. ASIC should look into this Tax avoidance issue.

    I am selling on smartbid.com.au and also limited stuff oztion - smartbid are offering free listings and no final value fees - sort of makes both ebay and oztion rather expensive.
  • Suing PayPal Not Enough

    I had a disagreement over my PayPal acount about 8 years ago - long before PayPal was acquired by eBay. There was a security concern with my account (interesting as I'd yet to use it). I was part of a class action law suit against PayPal and we won. My PayPal account remained blocked/flagged.
    This did not stop PayPal. Ebay buys PayPal. Ebay Australia forces sellers to list with PayPal. My PayPal account remains blocked. I can not sell on eBay anymore. I feel like I've been blacklisted.
    I never felt that PayPal is a secure transaction method - how secure can it be if they have security concerns over my account before I get a chance to use it? Don't believe this rubbish about consumers needing the security of PayPal. I don't believe consumers feel that way.
    People are forced to open PayPal accounts because they feel they need to in order to buy/sell on eBay. eBay users SHOULD HAVE THE RIGHT TO CHOOSE what payment methods they will accept and by all means, use PayPal if they prefer it.
  • E-Bay is STILL ruthless in treatment of sellers!

    I am so unhappy with E-Bay as they are still making people list PayPal as "payment option" on ALL auctions. It's not right for them to do this to those that use this website and sell legit items. E-Bay owns PayPal and they are already making enough money off of everyone already. Why should they get ANOTHER fee from us when our bidders us PayPal.

    On the other and, PayPal will also hold your money until you have "enough to withdraw it from them". You have to have $15.00 before you are "allowed" to withdraw our money. If your withdraw is less than $100.00 you're also charged a fee.

    Whatever happen to having websites that are easy to use and understand? I would love to know whatever happened to freedom of choice as well? It's becoming E-Bay against the world. It's ridiculous!!!!!!!!!!!!!!!!