Re: Avoiding Unpleasant Surprises On World's Biggest Auction Site


"Jack Crane" <jdcrane7@xxxxxxxxx> wrote in message
news:Xns97F6E2DA4E3E4jdcrane7yahoocom@xxxxxxxxxxxxxxxxx
Self-Defense For EBay Buyers
Avoiding Unpleasant Surprises On World's Biggest Auction Site

By Kathleen Day
Washington Post Staff Writer
Sunday, July 2, 2006; F01

Stephanie Marhefka bought several dresses and a laptop computer over the
years on eBay without problem. But the psychologist says her last
purchase was a disaster: She paid $700 for what an eBay seller said was a
solid wood desk, plus an additional $40 for the Brooklyn merchant to
deliver it to her mid-Manhattan apartment.

The desk she received in 2004 turned out to be damaged and made with
veneer, not solid wood. The seller's promise to replace it never panned
out. EBay's suggestion for remedying the situation went nowhere. Two
years later, the seller's phone is disconnected and Marhefka is stuck
with an unwanted desk.

Michael R. Dimino, a law professor at Widener University in Harrisburg,
Pa., has made 30 or so purchases on eBay without incident. But his luck
ran out last December, when the PlayStation 2 video game system he paid
$100 for never arrived. He soon discovered that other buyers had
complained about the seller.

Goods that are damaged, counterfeit, don't match what was advertised or
are never delivered remain a persistent problem for eBay and its
customers -- even though the numbers represent a relatively small
fraction of transactions on the Web site. How big a problem is unclear.
EBay Inc. does not disclose specific totals.

The auctioneer has been an Internet wunderkind, evolving since its
founding in 1995 from a folksy, funky cyberspace flea market into a Web
phenomenon that's the most visited e-shopping site. Last year, 546.4
million items were listed for sale on the site, up from 79.4 million five
years earlier.

While eBay officials say the vast majority of transactions take place
without a hitch, company spokesmen acknowledge that the growth in online
buying has been accompanied by a growth in online disputes, from simple
disagreements over a sweater's color to more serious allegations. And,
says eBay spokeswoman Catherine England, fraud also occurs against
sellers, when buyers don't pay up as agreed.

Cracking down on such problems has been a hot topic at the annual "eBay
Live!" gatherings of buyers, sellers and company executives. This year's,
in Las Vegas in June, was no exception: EBay president and chief
executive Meg Whitman in her keynote speech ticked off a number of
improvements in eBay's online dispute-resolution process.

"We're confident that is going to result in a significant reduction in
buyer claims against sellers, which will be great for everyone in the
eBay family," she said.

EBay says only 1/100 of 1 percent of the items on sale last year ended up
as confirmed cases of fraud. That fraction multiplied by the number of
items offered for sale last year yields 54,640 cases, though some company
critics suspect the actual number is much higher. The company defines
fraud as either a buyer not paying for goods received or a seller not
delivering a product or sending one that is counterfeit, damaged or
otherwise not as promised.

Ina Steiner, editor of AuctionBytes, an online newsletter that follows
eBay and other electronic auction sites, said the estimate does not
include many unresolved disputes that exceed the company's time limits
for consideration or were not counted for other procedural reasons. It
also does not include cases in which customers persuade their credit card
company to cancel the charge. And Steiner points out that by comparing
confirmed cases of fraud with the number of goods listed rather than the
number of actual sales, eBay makes the percentage seem smaller.

Whatever the numbers, consumers can reduce their chances for problems by
following a few simple tips, eBay executives and eBay watchers say.

First, use PayPal, an eBay subsidiary that makes online bill paying more
secure by acting as an intermediary between buyers and sellers. Consumers
give PayPal their credit card, debit card or bank-account information.
PayPal then pays for a item on behalf of the buyer without divulging
personal financial information to a merchant.

Second, pay PayPal with a major credit card or, depending on your bank's
policy, a debit card so you can have the issuing bank investigate claims
of wrongdoing. For example, if you report a problem to Visa, the company
will do what is called a "chargeback," said Visa USA executive Niki
Manby. That means it will remove the charge in question from your credit
card -- and, in Visa's case, from your debit card -- while it
investigates your claim with PayPal.

If you prefer not to rely on PayPal, insist at least on using a credit
card. Again, that will allow you to request a chargeback. Be suspicious
of any vendor who won't use PayPal or accept a credit card and "wants a
check or money order," England said.

Should you suspect that you have been scammed, there are several steps
you can take.

If you used PayPal, fill out the dispute form on the eBay site, which can
be found by clicking on the "Security and Resolution Center" button at
the bottom of the eBay home page. Follow the instructions, including
those asking the buyer to contact the seller to try to work things out.
You have to do that, in fact, before you can elevate your "dispute" into
a claim, where you are essentially applying for monetary reimbursement
from PayPal.

PayPal offers two reimbursement programs. One will reimburse a buyer up
to $175 for general purchases, and another refunds buyers up to $1,000 if
they bought from a seller who met certain eBay criteria for
trustworthiness. In going through the process, there are many deadlines
to meet and exceptions to watch. "Buyers have to know what the rules
are," said PayPal spokeswoman Amanda Pires.

Since the process can take a while, it pays to think a bit about how
strong your claim is.

If you feel you are on solid ground -- say, you want your money back
because the purchase never arrived -- Steiner and others recommend that
you wait only a couple of days or so before contacting your credit card
company to request a chargeback. This will ensure that you don't miss a
chance to get the charge erased.

The risk, of course, is that once the credit card company is finished
with its investigation, it may not find in your favor and could reinstate
the charge. Further, PayPal warns customers that it will no longer
process claims once a chargeback is requested. At that point, it is up to
the credit card company to sort things out.

Marhefka, the New York woman who bought a desk, didn't contact her debit
card company. By the time she went through the eBay resolution process,
the deadlines for filing with PayPal had expired. She did go to small-
claims court and win, but she can't find the seller. She effectively is
out the money.

Dimino, by contrast, contacted Discover Card within a few days of filing
his PayPal forms online. Discover took the $100 charge off his account,
and he hasn't heard anything about it since, except from PayPal to say
his claim with it had been canceled.

Dimino says he has no bad feelings about eBay and blames himself for not
checking out the seller more closely. But he also says his generally
positive attitude about the whole episode is largely colored by having
gotten his money back, and fast.

EBay officials say another strong consumer protection is the ability to
leave negative comments about a seller, which other potential buyers can
see at the time of purchase. But critics of the system say it's weakened
over the years. Aggressive sellers, for instance, can retaliate against
consumers who file disputes by leaving negative comments about buyers,
which might make other sellers shun them.

At the eBay gathering in Las Vegas, there was much discussion on how to
change the system. Some buyers and sellers elect to go to a third-party
mediator -- eBay suggests SquareTrade Inc. -- to work out an agreement
for both sides to retract negative comments about each other, company
officials say. EBay also is considering making it harder for those who
lose a dispute to leave unfavorable ratings.

Beyond the comment system, the auctioneer has enlisted the help of brand-
name manufacturers to police the site for fake Burberry scarves, Prada or
Juicy purses, Tiffany jewelry, or other counterfeit items. "EBay cannot
pretend to be an expert on everything," England says.

The company has set up a system allowing companies to contact it about
removing a suspicious item. But the system has flaws. Some eBay sellers
have successfully sued stores for filing erroneous complaints. And others
think eBay could do more. The high-end jeweler Tiffany and Co. has sued
the company, arguing that eBay is responsible for the sale of illegal
goods through its venue.

Last month, eBay announced it was going to have tougher screening for
overseas sellers, where it believes most counterfeit items come from.

And the final tip on protecting yourself on eBay? Just like in the stock
market or at a gambling casino, don't buy something you can't afford to
lose.

<http://www.washingtonpost.com/wp-
dyn/content/article/2006/07/01/AR2006070100148.html>

in short then, Cavity Empty...............


.

Loading