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eBay makes an appearance on Channel Nine's A Current Affair, with commentary from APC's Angus Kidman

ACCC swoops on PayPal plot as eBay plots global rollout

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Angus Kidman17 April 2008, 10:15 PM

The Australian Competition and Consumer Commission has begun investigating whether eBay's ban on all online payment methods except PayPal breaks Australian laws.

As APC reported last week, sellers are furious at eBay's plans to make PayPal effectively compulsory for all purchasers. The story has garnered ongoing media attention, including a report on Channel Nine's A Current Affair featuring commentary from APC.

Many users on eBay's discussion boards and elsewhere have said they plan to complain to the ACCC, claiming violation of trades practices laws. Anticipating those kinds of problems, eBay last week lodged an application with the ACCC, seeking immunity from such prosecution if the plans are implemented, on the grounds that using other methods can result in a "bad buyer experience" (or, in eBay-speak, a "BBE".) Users can respond to the proposal until May 2 by sending comments to adjudication@accc.gov.au.

eBay confirms global plot

When asked last week by APC if the Australian plan would be enacted elsewhere, eBay was non-committal. "This is an Australian initiative, but eBay does clearly look at what works in markets and what doesn't," eBay trust and safety director Alastair MacGibbon said at the time.

However, in its post-results earning call this week, CEO John Donahoe made it clear that the plan was indeed a pilot, and could be rolled out in months if successful in Australia. "Globally, PayPal will continue to focus on greater penetration into the Marketplaces business," its financial announcement ominously notes.

Change continues apace elsewhere on the eBay site. In another shift likely to invite controversy, eBay will start keeping track of the computers used by regular sellers, in an attempt to cut-down on "account takeovers" (where someone logs into another account and uses it for fraudulent purposes).

"From now on the system will be noting the computers members regularly use when buying and selling on eBay," eBay said in an announcement on its site. "Then in June, we'll begin checking the computer you use to list an item to see if it's one you regularly use."


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McBanjo (Cornerstone member):

So I guess it's time to ask, are there any other decent alternatives to eBay? A quick Google search shows quite a few even Australia based ones, but does anyone have any experience with these other sites? I know I'll definitely be avoiding eBay when this these policies are introduced. For the casual seller all that's needed is a reliable way to sell what they want, at a price they are willing to accept.

Tin (Cornerstone member):

Since the regular ebay forum participants (especially sellers) keep mentioning Oztion, it would be the best bet for buyers to look at.
A bit sad though to be effectively losing the one big auction site everyone worldwide knows.

As for eBay's logic... They are using this as a pilot. Given the INTERNATIONAL disgust at the idea, I can't see it being a brilliant financial decision.
And their reasoning for doing it is broken... I've had minor issues a few times, as have most eBay buyers. But no one I know has ever had cause to complain to or threaten eBay themselves.

Universe_JDJ (Regular user):

Just a question about that ACCC email address --> It seems to be a generic email address. Is there anything specific we need to mention to ensure that it gets sorted into the right dispute?

Tin (Cornerstone member):

You should read the info from the link in the article just before the email address (the one to ACCC's website, linked from the text about them seeking immunity). That should tell you how to make a submission.

Tom Mez (New user):

Oh man, Ebay wants to know what computer you use, so what will they do if I use my laptop, my desktop , a work pc and check something at my son's place, ban me for using too many computers, this is getting ridiculous, if Ebay wants to know the colour of my undies, I'll gladly send them a smelly pair. Isn't it illegal to pry into someone's pc from "the other side"

Tin (Cornerstone member):

That only effects sellers as far as I understand. And only those with low feedback.

But it is going too far. The changes about feedback, the PayPal forced usage and now this... It's like they've taken out a multi-billion dollar business life insurance policy of some sort and now want to cash in on purpose...

Patricia (New user):

Mrs. Kelly would not have even let young Ned play with these guys! Oztion is looking better by the minute, and I totally support the proposed "Ban ebay Day" on 1st May. Apologies to George Orwell, but the final paragraph above smacks far too much of "Big Brother" for me!

annoyed (New user):

Try the new one opening at www.bang4bucks.com.au at least it is Australian and I seen 2 editorials last week and it doesnt officially launch till the 30th, sellers are getting free listings and a $30 credit which is great.


dig (New user):

I can understand sellers concerns and disgust,Ebay is effectively saying it does not trust the very people it needs to exsist! This also says to me that Ebay invests very little of its massive profits to seller account verification.
There are many Australian sites that offer alternatives but not necessarily in the auction format (eg free classifieds,swaps,trades)
I dont understand all the hype with auctions anyway,why bid when you can bargain or barter?
Classifieds allow you contact the seller direct should you choose to.
And thats the key word "choose".
Ebay has far too many restrictions when it comes to sellers.
Clearly they want it both ways, pay our Ebay fees and then pay our banking fees too!





Tin (Cornerstone member):

Why bid when you can buy or barter? Well, some reasons I can think of are:
* It gives the impression of getting it cheaper or "winning" it.
* It takes out the hassle of haggling.
* It has a certain thrill to it for a lot of people.

You could equally ask why do people gamble. At least auctions don't just suck money off suckers.

dig (New user):

"gives the impression" well said Tin.
"hassle of haggling" some people enjoy the to and fro of negotiating a bargain, "it has a certain thrill to it for a lot of people".

I'm confused by your last remark... are you saying bidders can be equated to gamblers and gamblers are "suckers"?




Tin (Cornerstone member):

In further show of insanity, apparently eBay is now suing Craigslist, a company they own shares in. Why? Who knows...

Perhaps Craigslist left negative feedback after eBay refused to pay via anything but PayPal, which Craigslist couldn't accept...

consoleguy (New user):

This action by ebay smacks of arrogance. Their logic seems to be along the lines of making the exception the rule. As mentioned previously, most of us have had the odd bad-egg when dealing on ebay but it seems to me that these bad experiences are far outweighed by the good ones.

Ebay should be concerned that they are not throwing the baby out with the bathwater with this action. Surely this will only alienate many of the very customers they are trying to protect.

GRF9999 (New user):

It is clear that the current crop of supposed ebay enhancments is not sitting well with many users of the site. There is a myriad of other sites out there but looked at closely, they are mostly just clones of ebay all charging the same structure of fees (listing, extra features and of course the final sale fee).

One of the sites I have come across however, (www.sellmystuff.com.au)offers a flat monthly "Pay As You Go" based system which is what I beleive to be the fairest, simplest and cheapest system I have seen.

The site is relatively new (live in July 07) however they boast a rapidly climbing user base and items for sale.

I like the fact that it is a genuine Australian site (run out of Queensland), it's very easy to use and they offer prompt and real customer support either by email or telephone. Best thing is that no matter how much you sell, there are no nasty bills at the end of the month and they let you do business the way you want. You can also accept any payment methods you like.

The site is www.sellmystuff.com.au and I beleive they are worth giving a try.

TH3 5IN (New user):

By doing PayPal only Payment, eBay itself will earn a 1-2% of each transcation(PayPal belong to eBay). Which is truely Monopoly, What if they decide to increase charges like telstra on CreditCard Payment, there is no room for local seller when profit Margin is alreaady low enough.

Existing Professional eBay reseller

anonymous user Anonymous user

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