paypal/ebay

california

a buyer on ebay purchases "one thousand watches plus a bunch extra" for $999 and pays by paypal using a credit card. the watches are supposed to be 50% mechanical watches from 1970's or earlier.
watches arrive and there are only 275 watches and 1% are mechanical/old and the rest are cheap newer battery watches.
buyer tells seller about it and seller will not do anything...no refund...no more watches, etc.
buyer files a claim with paypal. paypal says they can not guarantee quality, etc. only that you received something for the money....as in you got some watches. only if the seller sent nothing could they do anything.
buyer tells paypal that they will file a claim with their credit card company and does. the credit card company reviews claim and investigates and rules in favor of the buyer and reverses the charge.
paypal emails the buyer and says that their paypal account is suspended because they did a chargeback. the account will not be accessable unless the buyer pays paypal $999.
the buyer also sells items on ebay and is often paid through paypal. most ebay buyers are used to the sellers email address being the paypal account to pay and so, despite being told not to pay paypal/email address, several buyers go ahead and do it.
now there is money going into the frozen account. paypal says that any money paid into that account is theirs now until $999 is reached, upon which time the account will be accessable to the buyer to withdrawl, pay etc.
is this legal?

My response:

We don't care.

When you conduct business over the Internet, and across State lines, you get what you deserve.

IAAL

So what did you do with those 275 watches now ? Did you keep them ?

"We don't care.

When you conduct business over the Internet, and across State lines, you get what you deserve."

Sorry, I thought this was supposed to be a site to get legal answers and not ignorant smart ass remarks.

"So what did you do with those 275 watches now ? Did you keep them ?"

The buyer has the watches just as they were received and wanted to send them back to the seller, but the seller said if they mail them he will refuse the delivery and the shipping is expensive to return just to have him refuse.
The buyer did not loose money because the credit card company credited the account. The seller did not loose money because paypal had paid the seller the money and then when the chargeback occurred, the seller had withdrawn the money and paypal got stuck with the loss.
The question is whether Paypal can freeze someone's account and only allow money to be received and if it is they keep it.

Sorry, I thought this was supposed to be a site to get legal answers and not ignorant smart ass remarks.

Click to expand...

(LOL) Actually, if you read some of the other threads, you'll find that you get both. Not such a bad price to pay for "free" advice.

When they're directed at someone else, they can even be funny.

Read Paypal's User Agreement

and do a web search for Paypal. They can, have and will continue to freeze user accounts for credit card chargebacks. They let your money come in, but do not allow you to access it.