Criticism of eBay
Encyclopedia
eBay
has its share of controversy, including cases of fraud
, its policy requiring sellers to use PayPal
, and concerns over forgeries and intellectual property violations in auction items.
is its feedback system. When a user feels that a seller or buyer has been dishonest, a dispute can be filed with eBay. An eBay user (whether seller or buyer) may be suspended if there are too many complaints made against them.
Until June, 2008, eBay allowed Mystery Box and Mystery Envelope auctions; however, these are almost all fraudulent auctions because the seller can manipulate the box contents to make sure it is never a good deal for the buyer. Mystery Envelope auctions offer cash prizes of an undisclosed amount to auction winners. The auction winner usually receives from 10% to 30% of the money he paid for the auction back in 'winnings'.
Scammers like to target new members to take advantage of their unfamiliarity with how eBay or PayPal works. New members can be easily tricked into thinking there is a special Web site they should make payments through (which is in fact a fake site setup by a scammer) or they may be tricked more easily into using a fake escrow company.
Many complaints have been made about eBay's system of dealing with fraud, leading to its being featured on the British consumer rights television program Watchdog
. It is also regularly featured in The Daily Mirrors Consumer Awareness page. The complaints are generally that eBay fails to respond when a claim is made.
Frauds that can be committed by sellers include:
Frauds committed by buyers include:
Fraud is combated by:
" account(s), either the seller under an alternate account or another person in collusion with the seller. Shill bidding is prohibited by eBay.
,
However, eBay has been criticized for not doing enough to combat the problem.
issued an alert noting counterfeit PCGS slabs and various United States and Chinese coins originating from People's Republic of China
being sold on eBay.
In court papers introduced by attorney for jeweler Tiffany & Co., it was claimed that researchers for Tiffany had determined that over 70% of the Tiffany silver jewelry offered for sale on eBay was fake. Tiffany & Co. filed a lawsuit against eBay in 2004 which claimed that eBay profited from the sales of counterfeit
Tiffany items that infringed on its trademark
. On July 14, 2008, a Federal District Court judge ruled that eBay does not have a legal responsibility to monitor users selling counterfeit items. In 2010, the Second Circuit affirmed this decision (see Tiffany v. eBay).
Before eBay's January 29, 2008, policy-change announcement, at the end of every transaction, both the buyer and seller had the option of rating each other. Both parties had the ability to rate each other and the experience as a "positive", "negative", or "neutral" rating and leave a comment no longer than 80 characters. As of CEO's John Donahoe's announcement however, the option for sellers to leave anything other than positive feedback to buyers (in response to an outcry from buyers who received negative feedback in retaliation for leaving the seller a negative) was removed.
According to critics, weaknesses of the feedback system include:
rights, have claimed that eBay profits from the infringement of intellectual property rights. eBay responded by creating the Verified Rights Owner (VeRO) program, which provides to rightsholders auction takedowns and private information on eBay users on demand.
Under the Australian Trade Practices Act 1974, it is unlawful for a company to require the use of a third party's products or services in order for a person to deal with the company, known as Third Line Forcing
. eBay submitted a notification under the Act, which provides automatic exemption from this provision unless the notification is subsequently revoked by the Australian Competition and Consumer Commission
(ACCC).
As part of its assessment of the notification, the ACCC called for submissions from interested parties. This attracted a record number of complaints from eBay members, banks, Google, and members of the business community and the Reserve Bank of Australia
. During this period, rival auction site OZtion
experienced a record number of new members.
The ACCC completed an initial draft proposal to revoke eBay's notification, stating that it believed consumers were in a better position to judge risk on individual transactions than eBay's management and has ruled the plan anti-competitive. However, before a final decision could be announced on July 3, 2008, eBay announced that it had withdrawn the notification to the ACCC and shelved its "PayPal only" plans.
, though in stages. The first stage, which was adopted on March 25, 2008, was aimed at sellers with feedback scores under 100 and in certain high risk categories. The requirement was extended to all sellers from June 3, 2008. This has attracted criticism by some of its users.
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
has its share of controversy, including cases of fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
, its policy requiring sellers to use PayPal
PayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
, and concerns over forgeries and intellectual property violations in auction items.
Fraud
eBay Customer Support claims that its data show that fewer than .01% of all transactions result in a confirmed case of fraud. One mechanism eBay claims combats fraudFraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
is its feedback system. When a user feels that a seller or buyer has been dishonest, a dispute can be filed with eBay. An eBay user (whether seller or buyer) may be suspended if there are too many complaints made against them.
Until June, 2008, eBay allowed Mystery Box and Mystery Envelope auctions; however, these are almost all fraudulent auctions because the seller can manipulate the box contents to make sure it is never a good deal for the buyer. Mystery Envelope auctions offer cash prizes of an undisclosed amount to auction winners. The auction winner usually receives from 10% to 30% of the money he paid for the auction back in 'winnings'.
Scammers like to target new members to take advantage of their unfamiliarity with how eBay or PayPal works. New members can be easily tricked into thinking there is a special Web site they should make payments through (which is in fact a fake site setup by a scammer) or they may be tricked more easily into using a fake escrow company.
Many complaints have been made about eBay's system of dealing with fraud, leading to its being featured on the British consumer rights television program Watchdog
Watchdog (TV series)
Watchdog is a BBC television series that investigates viewers' reports of problematic experiences with traders, retailers, and other companies around the UK...
. It is also regularly featured in The Daily Mirrors Consumer Awareness page. The complaints are generally that eBay fails to respond when a claim is made.
Frauds that can be committed by sellers include:
- selling counterfeitCounterfeitTo counterfeit means to illegally imitate something. Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product...
merchandise - see section below for more details; - shill bidding - see section below for more details;
- selling bootlegBootleg recordingA bootleg recording is an audio or video recording of a performance that was not officially released by the artist or under other legal authority. The process of making and distributing such recordings is known as bootlegging...
merchandise; - receiving payment and not shipping merchandise;
- shipping items other than those described;
- giving a deliberately misleading description;
- knowingly and deliberately shipping faulty merchandise;
- knowingly selling stolen goods;
- misrepresenting the cost of shipping; and
- shipping at a slower service than that paid for.
Frauds committed by buyers include:
- PayPalPayPalPayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
fraud, namely filing false shipping damage claim with the shipping company and with PayPal; - Friendly fraudFriendly FraudFriendly fraud, also known as friendly fraud chargeback, is a credit card industry term used to describe a consumer who makes an Internet purchase with his/her own credit card and then issues a chargeback through his/her card provider after receiving the goods or services...
: receiving merchandise and claiming otherwise; - returning items other than received; and
- the buyer sending a forged payment-service e-mail that states that he has made a payment to the seller's account (an unsuspecting seller may ship the item before realizing that the e-mail was forged).
Fraud is combated by:
- third-party businesses, such as CheckMEND, compiling lists of stolen goods from local authorities and businesses so eBay consumers can check to see whether the goods they are buying are stolen; and
- third-party software that could potentially eliminate eBay account hijacking by alerting users if they are being tricked into going to a bogus, or "spoof", Web site (see anti-phishing).
Shill Bidding
Shill bidding is bidding that is used to artificially inflate the price of a certain item. It is usually carried out with "shillShill
A shill, plant or stooge is a person who helps a person or organization without disclosing that he or she has a close relationship with that person or organization...
" account(s), either the seller under an alternate account or another person in collusion with the seller. Shill bidding is prohibited by eBay.
,
However, eBay has been criticized for not doing enough to combat the problem.
Forgeries
It is estimated that about a quarter of all ancient coins and about two-thirds of all antiquities sold on eBay are modern forgeries. In March 2008, Professional Coin Grading ServiceProfessional Coin Grading Service
PCGS is the acronym for Professional Coin Grading Service a third party grading service for grading rare coins. Founded in 1986, and located in Newport Beach, CA., it is a subsidiary of Collector's Universe, Inc. , a company that also buys and sells rare coins and operates a rare comic book...
issued an alert noting counterfeit PCGS slabs and various United States and Chinese coins originating from People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
being sold on eBay.
In court papers introduced by attorney for jeweler Tiffany & Co., it was claimed that researchers for Tiffany had determined that over 70% of the Tiffany silver jewelry offered for sale on eBay was fake. Tiffany & Co. filed a lawsuit against eBay in 2004 which claimed that eBay profited from the sales of counterfeit
Counterfeit
To counterfeit means to illegally imitate something. Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product...
Tiffany items that infringed on its trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
. On July 14, 2008, a Federal District Court judge ruled that eBay does not have a legal responsibility to monitor users selling counterfeit items. In 2010, the Second Circuit affirmed this decision (see Tiffany v. eBay).
Feedback system
eBay allows buyers to rate any seller using a feedback system that allows both positive and negative comments, however, sellers are prohibited from leaving anything other than positive feedback for buyers.Before eBay's January 29, 2008, policy-change announcement, at the end of every transaction, both the buyer and seller had the option of rating each other. Both parties had the ability to rate each other and the experience as a "positive", "negative", or "neutral" rating and leave a comment no longer than 80 characters. As of CEO's John Donahoe's announcement however, the option for sellers to leave anything other than positive feedback to buyers (in response to an outcry from buyers who received negative feedback in retaliation for leaving the seller a negative) was removed.
According to critics, weaknesses of the feedback system include:
- Small and large transactions carry the same weight in the feedback summary. It is therefore easy for a dishonest user to initially build up a deceptive positive rating by buying or selling a number of very low value items, such as e-bookE-bookAn electronic book is a book-length publication in digital form, consisting of text, images, or both, and produced on, published through, and readable on computers or other electronic devices. Sometimes the equivalent of a conventional printed book, e-books can also be born digital...
s, recipes, etc., then subsequently switch to fraud. eBay has since restricted digitally-delivered items to classified listings, which do not involve feedback. - Sellers can also attempt to boost their own feedback by buying their own items with alias accounts, and leaving positive feedback for their main selling account.
Intellectual property in auctions
Holders of intellectual propertyIntellectual property
Intellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...
rights, have claimed that eBay profits from the infringement of intellectual property rights. eBay responded by creating the Verified Rights Owner (VeRO) program, which provides to rightsholders auction takedowns and private information on eBay users on demand.
- In September 2005, eBay's privacy practices relating to its VeRO program came under scrutiny when South Bend, Indiana-based television station WNDU-TVWNDU-TVWNDU-TV is a television station in South Bend, Indiana. The station is an affiliate of the NBC television network. Its transmitter is located in South Bend. WNDU-TV broadcasts in HDTV on Channel 42, additionally simulcasting a local Doppler radar image...
reported that the Embroidery Software Protection CoalitionEmbroidery Software Protection CoalitionThe Embroidery Software Protection Coalition is a United States embroidery industry trade group. Its primary activity is the investigation and prosecution of alleged acts of copyright infringement. The group has drawn media attention for its campaign of settlement demands against individual...
was accusing American buyers, identified by eBay, of copyright infringementCopyright infringementCopyright infringement is the unauthorized or prohibited use of works under copyright, infringing the copyright holder's exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make derivative works.- "Piracy" :...
, and demanding monetary settlements. eBay's privacy policy warns that eBay may disclose personal information on the request of any VeRO rightsholder investigating illegal activity, although according to a University of Notre DameUniversity of Notre DameThe University of Notre Dame du Lac is a Catholic research university located in Notre Dame, an unincorporated community north of the city of South Bend, in St. Joseph County, Indiana, United States...
law professor, there is no legal basis, in the United States, for copyright infringement claims against buyers. - Some manufacturers have abused eBay's VeRo program, through which copyright and trademark owners can quickly protect their rights, by seeking to prevent all sales of their products on eBay.
- In November 2006, the English High Court ruled that a VeRO rightsholder's takedown request to eBay constituted a legal threat under design patentDesign patentIn the United States, a design patent is a patent granted on the ornamental design of a functional item. Design patents are a type of industrial design right. Ornamental designs of jewelry, furniture, beverage containers and computer icons are examples of objects that are covered by design...
law. Since groundless legal threats under design patent law are unlawful, the ruling holds that groundless VeRO takedown requests based on design patents are also unlawful. Further, the text of the ruling appears critical of the VeRO program in general: "It is entirely wrong for owners of intellectual property rights to attempt to assert them without litigation, or without the threat of litigation, in reply."
- On June 4, 2008, a court in Troyes, France awarded luxury goods maker Hermes damages of $30,000 as a result of the sale of two counterfeit Hermes bags on eBay in 2006. The court also ordered eBay to run a statement reporting the court case on the home page of eBay's French Web site for three months.
- On June 29, 2008, a court in Paris, France awarded damages of 40 million euros ($ 63 million) to luxury goods group LVMHLVMHLVMH Moët Hennessy • Louis Vuitton S.A., better known as LVMH, is a French multinational luxury goods conglomerate headquartered in Paris, Île-de-France, France. The company was formed after the 1987 merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971 merger...
over eBay auctions of counterfeit bags, perfumes and other items. The plaintiffs further alleged that auctions of legitimate perfumes were also illegal, because, they claim, only authorized resellers are permitted to sell them, and authorized resellers are not permitted to sell on eBay. The court agreed, entering a permanent injunction against eBay auctions of LVMH perfumes, whether counterfeit or not. After the appeals court declined to stay that injunction, eBay announced that French users would be barred from buying or selling LVMH perfumes and cosmetics on any of eBay's sites. - In July 2008, a United States court decided a trademark infringement lawsuit by jeweler Tiffany & Co.Tiffany & Co.Tiffany & Co. is an American jewelry and silverware company. As part of its branding, the company is strongly associated with its Tiffany Blue , which is a registered trademark.- History :...
in eBay's favor: "... It is the trademark owner's burden to police its mark, and companies like eBay cannot be held liable for trademark infringement based solely on their generalized knowledge that trademark infringement might be occurring on their websites." eBay advertises and profits from the sale of Tiffany products through its site, while Tiffany claims that no third-party resellers are authorized to sell Tiffany jewelry. Despite eBay's efforts to find and cancel illegal listings, many "Tiffany" listings are judged by buyers or by Tiffany to be counterfeit. The judgment specifies that eBay's advertising of the availability of Tiffany products on its site is a protected fair use of Tiffany's trademark, that eBay sufficiently protects buyers by canceling auctions reported to the VeRO program as believed to be infringing, and that eBay is not obligated to suspend sellers reported to VeRO without further evidence of infringement. - In October, 2008, Alan UK, manufacturers and importers of CB, Amateur and PBR radio equipment, announced to their official resellers that they planned to use their VeRO status to remove all listings of products bearing their brands (Midland, Alan, Albrecht et al) listed in 'new' condition. They blamed this on refurbished equipment and grey imports being sold as new on eBay. After an outcry from both consumers and their resellers alike, they later changed the scheme to give each official reseller a numbered ID to be shown in the listings. It is unclear where this policy stands at the present time (November 2011), as some sellers still show the ID, whereas some do not. The Alan UK website still has a signup page for the approved dealer scheme, stating that "We do not support Ebay only stores or businesses".
eBay requires sellers to use PayPal
In some countries (including in the United States), eBay requires sellers to offer its PayPal payment service with the claim that this makes transactions safer and easier. Critics counter this claim by saying that in reality, it's a way for eBay to "double dip" on its fees (since eBay also owns Paypal). In addition to eBay fees, sellers must pay a percentage to PayPal (which is owned by eBay), as well; this is charged on the shipping charges in addition to the sale price.Australia
In April 2008 eBay announced an introduction of a 'PayPal only' policy in Australia. The new policy would have meant that sellers will only be able to offer PayPal or cash payment on pick-up as payment methods. eBay claims that PayPal is the most secure method of payment.Under the Australian Trade Practices Act 1974, it is unlawful for a company to require the use of a third party's products or services in order for a person to deal with the company, known as Third Line Forcing
Third line forcing
Third line forcing is a form of exclusive dealing involving the supply of goods or services on the 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....
. eBay submitted a notification under the Act, which provides automatic exemption from this provision unless the notification is subsequently revoked by the Australian Competition and Consumer Commission
Australian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...
(ACCC).
As part of its assessment of the notification, the ACCC called for submissions from interested parties. This attracted a record number of complaints from eBay members, banks, Google, and members of the business community and the Reserve Bank of Australia
Reserve Bank of Australia
The Reserve Bank of Australia came into being on 14 January 1960 as Australia's central bank and banknote issuing authority, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank to it....
. During this period, rival auction site OZtion
OZtion
Quicksales is an online auction site based in Australia, and the second largest auction website in Australia. According to the site there are more than 750,000+ items available for auction or purchase and as of 15 September 2009 there are over 430,298 member accounts.-History:The OZtion website...
experienced a record number of new members.
The ACCC completed an initial draft proposal to revoke eBay's notification, stating that it believed consumers were in a better position to judge risk on individual transactions than eBay's management and has ruled the plan anti-competitive. However, before a final decision could be announced on July 3, 2008, eBay announced that it had withdrawn the notification to the ACCC and shelved its "PayPal only" plans.
United Kingdom
A similar policy requiring sellers to offer PayPal was also introduced in the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, though in stages. The first stage, which was adopted on March 25, 2008, was aimed at sellers with feedback scores under 100 and in certain high risk categories. The requirement was extended to all sellers from June 3, 2008. This has attracted criticism by some of its users.
Other eBay controversies
Other notable controversies involving eBay include:- On May 28, 2003, a U.S. District CourtUnited States district courtThe United States district courts are the general trial courts of the United States federal court system. Both civil and criminal cases are filed in the district court, which is a court of law, equity, and admiralty. There is a United States bankruptcy court associated with each United States...
jury found eBay guilty of willful patent infringement and ordered the company to pay $35 million in damages. The plaintiffPlaintiffA plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...
was MercExchangeMercExchangeMercExchange is a technology development and on-line auction company. Their founder's name is Thomas G. Woolston.-Licensees:The following companies have licensed MercExchange technology as of April 2007 * AutoTrader.com* Channeladvisor* uBid...
, who had accused eBay in 2000 of infringing on three patents, one of which is used in eBay's "Buy It Now" feature for fixed-price sales which accounts for 30% of eBay's business. The decision was appealed to the U.S. Court of Appeals for the Federal CircuitUnited States Court of Appeals for the Federal Circuit-Vacancies and pending nominations:-List of former judges:-Chief judges:Notwithstanding the foregoing, when the court was initially created, Congress had to resolve which chief judge of the predecessor courts would become the first chief judge...
(CAFC). The CAFC affirmed the judgment of willful infringement, and reversed the lower court and granted a permanent injunctionInjunctionAn injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions...
. eBay appealed the permanent injunction to the U.S. Supreme CourtSupreme Court of the United StatesThe Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
, which on May 15, 2006 found an injunction is not required nor automatic in this or any patent case where guilt has been established. The case was sent back to the Virginia district court for consideration of the injunction and a trial on another MercExchange patent the inventor claims covers the remaining 70 percent of eBay's business model (see eBay Inc. v. MercExchange, L.L.C.EBay Inc. v. MercExchange, L.L.C.eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 is a case in which the Supreme Court of the United States unanimously determined that an injunction should not automatically issue based on a finding of patent infringement, but also that an injunction should not be denied simply on the basis that...
). This case has been particularly controversial since the patents involved are considered to be business method patentBusiness method patentBusiness method patents are a class of patents which disclose and claim new methods of doing business. This includes new types of e-commerce, insurance, banking, tax compliance etc. Business method patents are a relatively new species of patent and there have been several reviews investigating the...
s (see Software patent debateSoftware patent debateThe software patent debate is the argument dealing with the extent to which it should be possible to patent software and computer-implemented inventions as a matter of public policy. Policy debate on software patents has been active for years. The opponents to software patents have gained more...
). - On July 28, 2003, eBay and its subsidiary PayPal agreed to pay a $10 million fine to settle allegations that they aided illegal offshore and online gamblingGamblingGambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods...
. According to the settlement, between mid-2000 and November 2002, PayPal transmitted money in violation of various U.S. federal and state online gambling laws. eBay's announcement of its acquisition of PayPal in early July said that PayPal would begin the process of exiting this market, and was already doing so when the ruling occurred. These offenses occurred prior to eBay's purchase of PayPal. - In late 2006, eBay effected a policy change which showed less information about bidders once auctions reached a certain value. This policy has been criticized for making shill bidding much harder to detect, to the potential disadvantage of buyers and significant advantage to unethical sellers who may artificially inflate the price of an auction. An investigation by The Sunday Times in January 2007 uncovered substantial evidence of shill bidding on eBay.
- An April 2007 lawsuit in California over monopoly practices.
- An August 2007 class-action lawsuit in which an Australian attorney stated, "eBay has been deceiving millions of consumers over the years by claiming their auctions start when submitted, when in reality they do not begin for at least several hours, and up to 24 hours. However, the clock starts running on [sellers'] selected auction time even though eBay hasn't posted it yet."
- On January 29, 2008, a series of new policy changes were announced including an increase in the final value fee and a decrease in the listing fee (when averaged out, the fees actually cost sellers more). Among the more controversial moves was the announcement that sellers would soon only be able to leave positive feedback for buyers, and would no longer have the ability to provide negative or neutral ratings regardless of the experience. The policies also give greater benefits to higher volume sellers. eBay now explicitly gives higher volume "Powersellers" a 5% to 20% discount on the final value fees. These sellers can also receive better terms on shipping costs and preferential positioning in search results.
- On February 18, 2008, sellers and buyers who felt the new fees and feedback structure were unfair commenced a one-week strike against eBay.
- In April 2008, eBay announced it was suing online classified site CraigslistCraigslistCraigslist is a centralized network of online communities featuring free online classified advertisements, with sections devoted to jobs, housing, personals, for sale, services, community, gigs, résumés, and discussion forums....
to "safeguard its four-year financial investment." eBay claimed that in January 2008, CraigslistCraigslistCraigslist is a centralized network of online communities featuring free online classified advertisements, with sections devoted to jobs, housing, personals, for sale, services, community, gigs, résumés, and discussion forums....
executives took actions that "unfairly diluted eBay's economic interest by more than 10%". In response, CraigslistCraigslistCraigslist is a centralized network of online communities featuring free online classified advertisements, with sections devoted to jobs, housing, personals, for sale, services, community, gigs, résumés, and discussion forums....
filed a countersuit against eBay in May 2008 "to remedy the substantial and ongoing harm to fair competition" that Craigslist claims is constituted by eBay's actions as a Craigslist shareholder. - In July 2008, eBay started letting web retailer Buy.comBuy.comBuy.com, Incorporated is an online retailer based in Aliso Viejo, California.Buy.com began by selling computers and electronics in 1997 and has since expanded into many other categories...
list millions of items for sale on eBay without having to pay the listing fees required of other sellers. Its account also highlights eBay's flawed Detailed-Seller-Rating system as Buy.com's eBay account, which was changed in December 2007 to "buy" via a name usurption, always gives free shipping and yet has a 4.8 Rating on "shipping charges," which is below the amount required for the 15% powerseller discount. - In January 2010, David Davidson from Droitwich, WorcestershireWorcestershireWorcestershire is a non-metropolitan county, established in antiquity, located in the West Midlands region of England. For Eurostat purposes it is a NUTS 3 region and is one of three counties that comprise the "Herefordshire, Worcestershire and Warwickshire" NUTS 2 region...
received tabloid attention in the United Kingdom after eBay withdrew his listing of a Dad's ArmyDad's ArmyDad's Army is a British sitcom about the Home Guard during the Second World War. It was written by Jimmy Perry and David Croft and broadcast on BBC television between 1968 and 1977. The series ran for 9 series and 80 episodes in total, plus a radio series, a feature film and a stage show...
board gameBoard gameA board game is a game which involves counters or pieces being moved on a pre-marked surface or "board", according to a set of rules. Games may be based on pure strategy, chance or a mixture of the two, and usually have a goal which a player aims to achieve...
. eBay claimed that, as the box graphics contained images of swastikaSwastikaThe swastika is an equilateral cross with its arms bent at right angles, in either right-facing form in counter clock motion or its mirrored left-facing form in clock motion. Earliest archaeological evidence of swastika-shaped ornaments dates back to the Indus Valley Civilization of Ancient...
s, it was NaziNazismNazism, the common short form name of National Socialism was the ideology and practice of the Nazi Party and of Nazi Germany...
paraphernalia and, as such, breached the firm’s offensive material policy. Members of the tabloid press criticised eBay's decision, claiming that they had divorced the images from its original context of a family friendly prime-time sitcom to pander to political correctnessPolitical correctnessPolitical correctness is a term which denotes language, ideas, policies, and behavior seen as seeking to minimize social and institutional offense in occupational, gender, racial, cultural, sexual orientation, certain other religions, beliefs or ideologies, disability, and age-related contexts,...
. Davidson was told he would be able to relist the item if he removed any images showing the swastika on the box. - The Internal Revenue ServiceInternal Revenue ServiceThe Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
and other governmental taxing agencies suspect that on many eBay transactions, the sellers are failing to report income and/or sales tax as required by law. Canada Revenue AgencyCanada Revenue AgencyThe Canada Revenue Agency is a federal agency that administers tax laws for the Government of Canada and for most provinces and territories, international trade legislation, and various social and economic benefit and incentive programs delivered through the tax system...
filed suit against eBay Canada and in 2007, the Federal Court of CanadaFederal Court of CanadaThe Federal Court of Canada was a national court of Canada that heard some types of disputes arising under the central government's legislative jurisdiction...
ruled that eBay Canada must provide the requested information. The Court of Appeal upheld that decision and in 2008, eBay Canada began providing names and sales data for its largest sellers. - On December 4, 2010, eBay subsidiary PayPalPayPalPayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
decided to freeze the account of WikileaksWikileaksWikiLeaks is an international self-described not-for-profit organisation that publishes submissions of private, secret, and classified media from anonymous news sources, news leaks, and whistleblowers. Its website, launched in 2006 under The Sunshine Press organisation, claimed a database of more...
citing terms of use violations over the publication of leaked US diplomatic cablesUnited States diplomatic cables leakThe United States diplomatic cables leak, widely known as Cablegate, began in February 2010 when WikiLeaks—a non-profit organization that publishes submissions from anonymous whistleblowers—began releasing classified cables that had been sent to the U.S. State Department by 274 of its consulates,...
, inviting allegations that PayPal did so in response to US government pressure. In response, a hacker group called AnonymousAnonymous (group)Anonymous is an international hacking group, spread through the Internet, initiating active civil disobedience, while attempting to maintain anonymity. Originating in 2003 on the imageboard 4chan, the term refers to the concept of many online community users simultaneously existing as an anarchic,...
launched denial-of-service attackDenial-of-service attackA denial-of-service attack or distributed denial-of-service attack is an attempt to make a computer resource unavailable to its intended users...
s against the main PayPal site.