23/5/2008 - 28 US Attorneys General vs. Paypal and Ebay
The management of Ebay got's it's arse chewed off by the Attorney Generals in the USA.
Why - because the management of Ebay have been caught STEALING money from peoples accounts.
Further to this; the people who manage Ebay have been writing up "clever and convoluted" terms and conditions that are the ultimate in sleaze; and after they draw up these terrible impositions, they even go so far as contradicting their own terms and conditions.
Online payment company PayPal has settled a consumer complaint with the attorneys general of 28 states. The states had brought action against the eBay subsidiary because of some of its customer service policies.
The company said it will shorten and streamline its user agreement and provide more information about its protection programs. The company will pay $5.2 million to customers and to the states to cover their investigation costs.
The state officials said they received a number of complaints from consumers using PayPal. Many consumers said their accounts had been frozen without notice. Some said their bank accounts were debited by PayPal when they expected their credit cards to be charged, and some said they never received refunds for items they had purchased online but never received.
"The consumer has rights, and PayPal must explain those rights," said Maryland Attorney General Joseph Curran.
"Under this agreement, consumers will no longer have to click through multiple hyperlinks to get critical information about their financial transactions," said Washington Attorney General Rob McKenna.
PayPal is the largest company providing payment services for consumers making online purchases. It was acquired by online auction site eBay in 2002.
WASHINGTON (CBS.MW) -- Online payment service PayPal agreed to pay $150,000 to New York's attorney general to settle charges the company misrepresented its policies to accountholders.
In addition, PayPal continues to "answer questions" raised by several other state attorneys general, according to eBay spokesman Chris Donlay.
The firm came under scrutiny from federal and state regulators after customer complaints prompted questions into whether the firm violated consumer-protection laws. Customers have complained that PayPal's actions are inconsistent with its user agreement.
The agreement requires PayPal to provide a more explicit explanation to accountholders regarding their rights in the event that a merchant fails to deliver merchandise.
Ebay first disclosed the federal and state inquiries in a filing with the Securities and Exchange Commission last summer, and again in its annual report filed Monday.
Probes by the Federal Trade Commission and the attorneys general of several states were sparked by the customer complaints, though the FTC has not commenced a "formal" investigation into the matter, nor have any other state regulators, Donlay said.
An investigation by New York Attorney General Eliot Spitzer found that PayPal's user agreement "misrepresented" terms and conditions. The New York regulator charged that in practice, PayPal often "denied" customer rights afforded by the user agreement.
For its part, eBay said in the filing that if PayPal's processes are found to be unlawful it could be subject to enforcement action or fines.
Under the agreement with Spitzer, "PayPal must clearly describe in its user agreement accountholder rights, including any conditions or limitations to those rights, and reversal or refund policies," according to a written statement.
The firm must also pay New York state $150,000 in penalties and to cover the cost of the investigation.
The eBay spokesman said New York has been the only formal investigation into the matter.
PayPal accounts nearly doubled to 40 million as of Dec.31, compared with 23 million in 2002, the company said. The company had more than $12.2 billion in transactions during 2003.
EBay's shares gained 52 cents to close Monday trading at $69.83.
Leticia Williams is a reporter for CBS.MarketWatch.com in Washington.
And yet - the Ebay / Paypal "Trust and Safety officer said in his interview with "Today Tonight":
1. Get to know the seller (their feedback reputation)
2. Use Paypal
3. Follow the safe trading tips on the website."
Sounds simple enough.
Pay Pal Protection has been upped from $3,000 to $20,000.
This sounds really good too......
Except Paypal and Ebay had a history of fraudulent conduct and making fraudulent contracts - both overt and covert.
While they Ebay reps are saying "Oh you now have 20G protection...", what they are NOT saying is all the loops you have to jump through, to QUALIFY for the 20G protection.
This is called "Read the Fine Print":
So while they are not actually lying, the picture that they put forward - that gives the impression that you are "Austomatically covered for up to 20G" - isn't true either.
It's called "Deceit by omission", through only spruiking the fattest figures and leaving out all the "messy little details"...
Items listed in the following categories are not required to offer PayPal as a payment method (PayPal will be optional):
Cars, Bikes, Boats
Cars
Motorcycles
Aircraft
Boats
Vehicles (Caravans)
Trailers
Trucks, Commercials
Services
Home
Real Estate
Business, Industrial
Businesses for Sale
From 17 June 2008, the following categories will NOT be covered by PayPal Buyer Protection:
Cars, Bikes, Boats
Cars (covered by Vehicle Purchase Protection)
Services
Home
Real Estate
Business, Industrial
Businesses for Sale
About PayPal Buyer Protection
PayPal Buyer Protection is designed to protect you while shopping on eBay.com.au. If you buy an item from another eBay site, you will need to refer to the buyer protection policy on that country's site.
What is PayPal Buyer Protection?
With the exception of the categories listed below, all items paid for by PayPal on eBay.com.au will be eligible for at least AU$400 PayPal Buyer Protection if you do not receive the item you paid for or it is significantly not as described by the seller. Certain items may be eligible for up to AU$3,000. Conditions apply.
PayPal Buyer Protection covers tangible or physical goods that can be shipped. It does not cover intangibles, services, licences and other access to digital content, vehicles, airline flight tickets, and items prohibited in the PayPal Acceptable Use policy. Claim limits apply. To find out more, read the PayPal Buyer Protection policy.
If you don't already have a PayPal account, open one now by clicking on the image below.
PayPal Acceptable Use Policy
This Policy was last modified on 14 May 2008.
You are independently responsible for complying with all applicable laws in all of your actions related to your use of PayPal's services, regardless of the purpose of the use. In addition, you must adhere to the terms of this Acceptable Use Policy.
Prohibited Activities
You may not use the PayPal service for activities that:
violate any law, statute, ordinance or regulation
relate to sales of (a) narcotics, steroids, certain controlled substances or other products that present a risk to consumer safety, (b) drug paraphernalia, (c) items that encourage, promote, facilitate or instruct others to engage in illegal activity, (d) items that promote hate, violence, racial intolerance, or the financial exploitation of a crime, (e) items that are considered obscene, (f) items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the laws of any jurisdiction, (g) certain sexually oriented materials or services, or (h) certain firearms, firearm parts or accessories, ammunition, weapons or knives
relate to transactions that (a) show the personal information of third parties in violation of applicable law, (b) support pyramid or ponzi schemes, matrix programs, other “get rich quick” schemes or certain multi-level marketing programs, (c) are associated with purchases of annuities or lottery contracts, lay-away systems, off-shore banking or transactions to finance or refinance debts funded by a credit card, (d) are for the sale of certain items before the seller has control or possession of the item, (e) are by payment processors to collect payments on behalf of merchants, (f), are associated with the sale of traveler’s checks or money orders, (h) involve currency exchanges or check cashing businesses, or (i) provide certain credit repair or debt settlement services
violate applicable laws or industry regulations regarding the sale of (a) tobacco products, or (b) prescription drugs and devices
involve gambling and/or gaming activities, including, but not limited to casino games, sports betting, horse or greyhound racing, lottery tickets, certain games of skill, and other ventures that facilitate gambling unless the operator has obtained prior approval from PayPal and the operator and customers are located exclusively in jurisdictions where such gambling activities are permitted by law.
Activities Requiring Approval
PayPal requires pre-approval to accept payments for certain services as detailed in the chart below.
Service Requiring Pre-Approval
Contact Information
Collecting donations as a charity or non-profit organization; dealing in jewels, precious metals and stones; acting as a money transmitter or selling stored value cards; selling stocks, bonds, securities, options, futures or an investment interest in any entity or property; or providing escrow services.
Please send contact information, business website URL and a brief business summary to compliance@paypal.com
Offering online dating services; providing file sharing services or access to newsgroups; or selling alcoholic beverages.
Please send contact information, business website URL and brief business summary to aup@paypal.com
Transactions on eBay
When using PayPal's services in support of eBay transactions, you must comply with all of these guidelines and eBay's Prohibited and Restricted Items rules found here - http://pages.ebay.com.au/help/policies/items-ov.html.
Violations of the Acceptable Use Policy
We encourage you to report violations of this Acceptable Use Policy to PayPal immediately. If you have a question about whether a type of transaction may violate the Acceptable Use Policy, you can email PayPal's AUP Compliance Department at: aupviolations@paypal.com.
IMPORTANT: This PayPal Buyer Complaint Policy and PayPal Buyer Protection Policy is offered by PayPal and may be subject to change - this document is for informative purposes only - the PayPal Buyer Complaint Policy and PayPal Buyer Protection Policy will be available and effective from June 7th 2007 on www.paypal.com.au
This Policy is effective for all purchases made on or after June 7, 2007.
General. PayPal has two programs to assist buyers and sellers in resolving disputes.
PayPal Buyer Complaint Policy.
PayPal Buyer Protection Policy.
PayPal Buyer Complaint Policy. PayPal Buyer Complaint Policy is our program to assist buyers in recovering payments made to non-eBay sellers when goods are purchased but not delivered to the buyer (item not received). In order to qualify under the PayPal Buyer Complaint Policy, your purchase must meet all of the eligibility requirements below, and you must comply with all of the buyer responsibilities below. If you are eligible under this policy, PayPal will make its best efforts to recover your payment from the seller, but recovery of your payment is not guaranteed. Your recovery is limited only to the amounts that PayPal is able to recover from the seller.
PayPal Buyer Protection Policy. PayPal Buyer Protection Policy is our program to reimburse buyers for payments made to sellers on an eligible eBay website when: (a) goods are purchased but not delivered to the buyer (item not received), or (b) goods are delivered but are "significantly not-as-described" in the listing. If you are eligible under the PayPal Buyer Protection Policy, PayPal will first try to recover your payment from the seller. If PayPal is unable to recover your payment from the seller, PayPal will pay you the maximum amount of coverage for which your transaction qualifies. In order to qualify under the PayPal Buyer Protection Policy, your purchase must meet all of the eligibility requirements below, and you must comply with all of the buyer responsibilities below.
Amount of Coverage - PayPal Buyer Protection Policy. If the item you purchase is eligible under the PayPal Buyer Protection Policy, the amount of coverage that PayPal will provide to you depends on two factors: (a) whether your purchase is eligible for Top Tier or Basic Tier coverage, and (b) from which eBay website that you made the purchase.
Protection Levels. PayPal Buyer Protection Policy provides two levels of protection: "Top Tier" and a "Basic Tier".
Top Tier: The item you purchased is eligible for Top Tier protection if:
The seller's eBay feedback rating is 50 or above, and at least 98% positive.
The item listed on an eBay website had a notation next to it stating that it may be eligible to receive the applicable amount for Top Tier protection as listed below.
The seller has a Verified Premier or Verified Business Account in good standing,
the listing was on an eligible eBay website, and
The seller is a PayPal User from one of the following countries:
Argentina
Italy
Austria
Jamaica
Australia
Japan
Belgium
Korea
Brazil
Mexico
Canada
Netherlands
Chile
New Zealand
China
Norway
Czech Republic
Poland
Denmark
Portugal
Ecuador
Singapore
Finland
Sweden
France
Spain
Germany
Switzerland
Greece
Taiwan
Hong Kong
Thailand
Hungary
United Kingdom
India
United States
Ireland
Uruguay
Basic Tier: If your item qualifies under the PayPal Buyer Protection Policy, but does not qualify for Top Tier protection, you will receive Basic Tier protection.
Eligible eBay Website. This chart shows the maximum amount of protection that you will receive based on the website from which you made your purchase.
Eligibility Requirements. In order for your transaction to be eligible under the PayPal Buyer Complaint Policy or the PayPal Buyer Protection Policy, all of the following requirements must be met:
Purchase a Qualifying Item. Your purchase must be for a tangible, physical good that can be shipped. The following items are not eligible under either the PayPal Buyer Complaint Policy or the PayPal Buyer Protection Policy: intangibles, services, licences and other access to digital content, live auctions, vehicles, airline flight tickets, and items prohibited in the PayPal Acceptable Use Policy.
Purchase from an Eligible eBay Website. The PayPal Buyer Protection Policy is only available for purchases made on the eligible eBay websites listed above. The decision whether to offer coverage under the PayPal Buyer Protection Policy on a given listing is at PayPal's sole discretion. If coverage under the PayPal Buyer Protection Policy is not offered at the time the seller posts the listing, the decision cannot be appealed. (This requirement does not apply to the PayPal Buyer Complaint Policy.)
PayPal Account. You must have a PayPal account that is in good standing.
Payment Requirements. You must use PayPal as your funding source when you make the payment. You must send a single payment for the full price of the item to the PayPal account specified by the seller in the listing. For PayPal Buyer Protection coverage you must either use the "Pay Now" button to send the payment, or associate the payment with the eBay listing by entering the number into the PayPal payment instructions. If you send the payment to a different PayPal account or use a payment method other than PayPal, even at the seller's request, the transaction will not be covered by the PayPal Buyer Complaint Policy or the PayPal Buyer Protection Policy.
File a Dispute/Escalate to a Claim. In order to qualify under the PayPal Buyer Complaint Policy or the PayPal Buyer Protection Policy, you must first file a dispute online in the PayPal Resolution Centre and attempt to resolve the dispute with the seller. The dispute must be filed within 45 calendar days of the date that you made the payment to the seller. In addition, you must escalate the dispute to a claim within 20 calendar days of the date you filed the dispute. Once you escalate the dispute into a claim, PayPal will evaluate your claim to see if you are eligible under either the PayPal Buyer Complaint Policy, or the PayPal Buyer Protection Policy. (Registered buyers in Germany are not required to file a dispute prior to filing a claim. Instead, such buyers may go directly to the claim phase, but must file a claim within 45 calendar days of the date of the payment in order to qualify for the PayPal Buyer Complaint Policy or the PayPal Buyer Protection Policy.)
Disputes / Claims.
Reasons to File a Dispute.
The seller did not deliver the promised goods. Buyers should wait a reasonable amount of time - at least a week - to receive the item, before filing a dispute for item not received.
The item delivered by the seller is 'significantly not-as-described' in the item listing. An item is 'significantly not-as-described' if the seller clearly misrepresented the details of the item in a way that affects its value or usability. Please note that this does not include cases where you are merely disappointed with the item or where the item did not meet your expectations. Reasons that an item may be considered 'significantly not-as-described' include, but are not limited to, the following:
The item is a completely different item to that which was presented by the seller in the listing, e.g. an audio book instead of a printed book, a desktop computer instead of a laptop, a picture of an item instead of the actual item; or an empty box;
The condition of the item is significantly different. For example, if the item has clearly been used multiple times rather than 'almost new' or 'still in box' or is obviously repackaged rather than 'mint';
The item is unusable and was not disclosed as such. For example, if there are missing major parts or components, will not function or turn on, or spoiled or past a relevant date. (NOTE: this applies to the item in its received state, no matter what the condition when it was sent.);
The item is not authentic and was not disclosed as such. For example, if a fake or pirated item that was advertised as authentic or a completely different or inferior brand of a similar product; or
The item is missing a major portion or quantity. For example, if the buyer ordered 4 dozen golf balls but only received 1 dozen or 4 golf balls or the item is missing a primary component, like a blender missing a top or coffee maker missing the bottom plate.
An item is not considered 'significantly not-as-described' if:
The item fits into one of the 'significantly not-as-described' categories but was reasonably and prominently described in the listing as such. For example, if the listing states one of the following: "Item is being sold as is," "Item may not work properly," "Item is missing some parts," or "See picture for scratches or damages";
The item is not wanted by the buyer after s/he sees it in person but was properly described in the listing;
The description could have been reasonably misinterpreted by the buyer or the seller. For example, if the item is a different colour than advertised (e.g. the item is aqua-marine but was advertised as teal);
The item did not meet your expectations; or
Item has minor scratches but was listed as 'in used condition'.
Please note that these are representative examples. PayPal encourages all buyers and sellers to communicate with each other before and after the transaction to prevent these issues from occurring. For items that do not qualify as 'significantly not-as-described', we encourage the buyer and seller to find an equitable solution. PayPal reserves the right to make a decision on 'significantly not-as-described' if the buyer and seller cannot agree. Once PayPal has made a decision on a 'significantly not-as-described' item, for the purposes of the PayPal Buyer Protection Policy that decision is final and cannot be appealed.
Dispute and Claim Process. Once you file a dispute as a buyer, PayPal will notify the seller of the dispute, and while the dispute is open, you and the seller are able to access the details of the dispute via the resolution centre and post messages to each other in connection with the dispute. Any messages you post are viewable by PayPal and the other party to the dispute. If you escalate the dispute to a claim, PayPal may review and use the content of all posted messages to evaluate your claim. You may not post any message that is offensive, discourteous, false, misleading, profane, abusive, threatening or otherwise inappropriate.
Buyer Responsibilities.
You must respond to any PayPal inquiries regarding the claim within the time specified. If you fail to respond to PayPal's request for more information, your claim will be cancelled and you will not receive a refund.
If you file a claim for a 'significantly not-as-described' item, we may require you to ship the item at your expense to the seller, to PayPal, or to a third party designated by PayPal. In addition, we may require you to obtain documentation from a qualified third party to substantiate your claim, or to verify that you have destroyed the item if we request you to do so. In some instances, we may require you to supply a copy of a police report substantiating your claim.
If we ask you to ship the item, you will be required to show proof of shipment.
Buyers in Australia may show proof of shipment by providing PayPal with any of the following:
A faxed copy of the shipping receipt that includes the buyer's delivery address. You can get this from Australia Post's Registered Post and Australia Post's Registered Post International, or
A shipping code that PayPal can use online to view the shipping status and the buyer's delivery address. You can get this from TNT, DHL, FedEx, and other carriers, or
A receipt issued by the carrier that is signed by the recipient acknowledging delivery.
Buyers in the United States and Canada must use an online-trackable shipping method and will be asked to provide the tracking number to PayPal. For transactions of $250.00 USD or more (or equivalent in the transaction currency), you will be required to provide an online proof-of-receipt in the form of a signature from the recipient.
Buyers outside of the United States, Canada, and Australia are required to use an online-trackable shipping method if one is available.
If you are required to send the item to PayPal, you agree to transfer the ownership of the item to PayPal and if requested, provide all reasonable assistance in ensuring that the transfer of ownership takes place.
If you and the seller agree to a refund amount that is less than the amount of the original transaction, and the seller provides you the refund, PayPal will consider your claim/dispute to be successfully resolved.
Seller Responsibilities.
You must respond to any PayPal enquiries regarding a claim filed against you within the time specified. If you fail to respond to PayPal's request for more information, you forfeit your right to appeal and the refund will be paid to the buyer from your PayPal account.
If a buyer initiates a dispute for an amount greater than $100.00 USD (or the equivalent in the transaction currency), PayPal will place the disputed amount (to the extent it remains in the seller's account) on hold until the dispute/claim is resolved.
If PayPal decides a claim for "significantly not as described" in favour of the buyer, you may appeal PayPal's decision only if the item was returned to you from the buyer in a condition other than its condition when you shipped it to the buyer (more than the normal wear from posting).
If the buyer claims that the item was not received, you will be asked to provide proof of shipment. If we ask you to ship the item, you will be required to show proof of shipment. You may show proof of shipment by providing PayPal with any of the following:
A faxed copy of the shipping receipt that includes the buyer's delivery address. You can get this from Australia Post's Registered Post and Australia Post's Registered Post International, or
A shipping code that PayPal can use online to view the shipping status and the buyer's delivery address. You can get this from TNT, DHL, FedEx, and other carriers, or
A receipt issued by the carrier that is signed by the recipient acknowledging delivery.
In the event that a PayPal Buyer Complaint Policy claim is decided in the buyer's favour, you are responsible for reimbursing the buyer for the amount of the payment. In addition, if a PayPal Buyer Protection Policy claim is decided in the buyer's favour, you are responsible for reimbursing PayPal for the amount refunded to the buyer. This could mean that your PayPal account balance may reflect an amount owing to PayPal, and your account access may be limited. In the event that a claim is filed against you, we recommend keeping sufficient funds in your PayPal account to cover the refund of the payment and avoid your balance becoming negative.
Limitations.
One Reimbursement Per Listing. You may only receive one PayPal Buyer Protection Policy reimbursement per eBay listing. For multiple-listings under one PayPal payment, each qualified listing is eligible for up to the maximum amount of coverage.
One Claim Per Payment. If your claim qualifies for the PayPal Buyer Protection Policy, you may file a claim for either: (a) item not received, or (b) item significantly not as described. You are not permitted to file a claim for "item not received" and then change it to "item not described" (or vice versa) even if circumstances change. In addition, if you purchase multiple items with a single payment, you must include all of your concerns in a single claim. A PayPal Buyer Protection Policy claim may not be edited or changed after it has been filed.
Single PayPal or eBay Claim. You may not file a claim with both PayPal and eBay for the same transaction. If your PayPal Buyer Protection claim is paid, any eBay claim will be refused. If your PayPal claim is refused, your eBay claim will also be refused.
Decisions are final. Once PayPal has decided a claim, it cannot be reopened.
Availability. PayPal reserves the right to change or discontinue the PayPal Buyer Complaint Policy or the PayPal Buyer Protection Policy in its sole discretion at any time and without notice. All payments made under these Policies will be made at PayPal's sole discretion. Pending claims at the time of any such discontinuance will continue to be processed until a final decision is reached.
eBay Standard Purchase Protection Program.
If you make a purchase from one of the eBay websites listed below, you may be eligible for the eBay Standard Purchase Protection Program ("eBay SPPP") instead of the PayPal Buyer Protection Policy. The eligibility requirements for eBay SPPP are the same eligibility requirements for PayPal Buyer Complaint Policy as listed above. eBay Standard Purchase Protection Program is our program to reimburse buyers for losses up to the applicable coverage amount minus the processing cost for purchases made on the eBay SPPP websites.
The final price of the item purchased must be over the applicable processing cost. Multiple listings cannot be combined into one claim to become eligible, even if purchased from the same seller. Buyers may submit up to three eBay Standard Purchase Protection Program claims per six-month period.
Relationship between PayPal Buyer Complaint Policy, PayPal Buyer Protection Policy and your Credit Card Chargeback Rights. The following information relates to reimbursement for losses from purchases where you used a credit card to fund a PayPal purchase:
Credit card chargeback rights, if they apply, are broader than the PayPal Buyer Complaint Policy and the PayPal Buyer Protection Policy. Chargeback rights are not limited to $2,000 per transaction, can be filed more than 45 days after the payment, and may cover unsatisfactory items even if they are not Significantly Not as Described.
You can choose to file a dispute through our Online Dispute Resolution Centre and escalate the dispute into a claim or you can choose to exercise your chargeback rights. However, you cannot pursue both at the same time or seek a double recovery. If you initiate a dispute through the Online Dispute Resolution Centre and you then, while the dispute or claim is pending, file a chargeback, PayPal will cancel your dispute or claim, and you will have to rely solely on your chargeback rights.
If you close your dispute or it is otherwise closed, or if you cancel a claim or it is denied or results in no refund, you may still be able to pursue your chargeback rights.
If you timely file a dispute and then escalate it to a claim, and we do not complete processing of that claim until after your credit card issuer's imposed deadline for filing a chargeback or after your bank's deadline for filing a dispute, and you recover less than the full amount you would have been entitled to recover from the credit card issuer or the bank, we will reimburse you for the remainder of your loss (minus any amount you have already recovered from the seller or PayPal. PayPal reserves the right to contest chargebacks, in accordance with the rules of the applicable card issuer or card association.
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