Home eCommerce Blog Fraud Under Their Very Noses - Why didn’t eBay act?

Fraud Under Their Very Noses - Why didn’t eBay act?

EBS International, one of eBay Australia’s largest sellers, is under investigation for leaving hundreds of customers out of pocket following the collapse of the company. The company, which traded under the eBay username ebusiness-supplies, sold exercise equipment, pocket bikes and furniture.

One of the biggest mysteries surrounding the event is why eBay let the seller continue trading - despite allegedly receiving a number of complaints dating back as far as 2006.

In the three months before its collapse, EBS International sold approximately AUS $1 million worth of goods, none of which seem to have been delivered. The company directors have moved to China, telling liquidators that the company collapsed because an agent there took money without delivering goods. Although the company received more than 450 negative feedbacks, it was only yesterday (when the negatives finally reached 650), that eBay decided to shut down the ebusiness-supplies account.

eBay has set up a dedicated PayPal fund to refund buyer’s their money – but for anyone who purchased via credit card or bank transfer, the message so far is "sorry, but too bad". On the eBay forums, many people are decrying the apparent bias toward PayPal users. Many believe that if eBay don’t do anything about refunding buyers who used alternative payment methods they will soon face a court case. And it gets worse. In what has been described by eBa

And it gets worse. In what has been described by eBay seller Robert Vandermeer as "..a growing case for negligence against eBay", it has also been revealed that EBS International was blatantly flouting PayPal’s rules by promising to deliver items within 30 days of purchase. Yet PayPal specifies that sellers must guarantee delivery within 20 days. Unfortunately, this means that buyers who received items after the 20 day period are not entitled to refunds under PayPal’s buyer protection program.

What is going on here? We’ve all heard plenty of stories about eBay taking swift and decisive action over more minor transgressions – yet this one appears to have been allowed to continue right under their noses!

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3 Comments Add your comment
Whoever is making policy at eBay needs to rethink and reconsider some of the rules they have put into place this year. It seems they have completly forgotton or just don't care about the little people that made them the giant they are today. What really hurt was, in eary spring this year they decided to end the sales of ebooks and all downloadable items sold as usual. They cited the integrety of there feedback system as being used by some to inflate the number of positive feedback numbers. Thats a crock. How many ways can you think of that could have solved the feedback problem if indeed it even existed. I have been an eBay seller for more than ten years now and let me say inclosing that eBay it ain't what it used to be. Big Al dotcomgold@aol.com Reply
has anyone besides me ever noticed that everything that ebays does somehow has to deal with feedback? I have been selling here for years and everytime they take any kind of action its always to protect "feedback" they have totally decided the buyer is always right and the seller is the target now. Since they have opened I ahve reported fraud after fraud from illegal listing, extortion of feedback, seller nonperformance, and just straight up stealing. everytime the crooks keep on selling, and ebay doesnt do anything. But try giving someone a deserved negative by using another account because they ruined your 100% feedback and extorted you for fun. that bad guy complains what comes around goes around, but the person who got justice gets a 30 day suspension. everyone can steal your money according to ebays action on theives, but leave someone a deserved actual negative and then they care. what a crock. Reply
Ebay asks for credit/debit card verification and it says it won't take any amount from it. I used my mother's debit card for verification and to her surprize when she checked her balance, ebay deducted at least 50 pesos and it was three times. I wonder if she was reimbursed but I doubt. Why would ebay verify and take an amount? Reply
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