Ebay

[DBag]

eBay/Paypal

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Hello; I am an eBay seller and I also have a Paypal business account. Many people have had problems with Paypal but that is because they do not read the rules and understand them. This is refelected by the number of people who only accept money orders or other forms of payment on eBay. If a buyer has a problem with an item and it is covered under Paypal buyer protection, Paypal does have the right to limit or restrict an account while they investigate. It is unfortunate when a buyer takes that route without contacting the seller first and allow the seller to attempt to solve their problem but it happens. It has been my experience that Paypal will discuss your problem with you in person and explain the problem, why not try calling them on the telephone and talking to them rather then depend on email or fax. You may get a more complete answer.

 

[john123456]

In 2002, a California federal court ruled that Paypal’s User Agreement was unconscionable. In Comb v. Paypal, Inc., 218 F. Supp. 2d 1165 (N.D.Cal. 2002), the Court specifically held, “[h]aving considered the terms of the User Agreement generally and the arbitration clause in particular...the Court concludes that the User Agreement and arbitration clause are...unconscionable.”

http://pub.bna.com/eclr/021227.htm

As a result of this case, Paypal changed some of the terms in it's TOS (for example the arbitration clause) and is in the process of paying over $9,000,000 to the attorneys and class members.

http://www.settlement4onlinepayments.com/settlement.pdf

 

[JETX]

In 2002, a California federal court ruled that Paypal’s User Agreement was unconscionable.

That ruling had to do with the finding that PayPal's TOS wasn't clear that they could 'freeze' an account while they investigated complaints or questionable transactions. They have since revised their TOS to clarify.

The problem arose from vendor sales of satellite piracy items and PayPal receiving a complaint from DirectTV. PayPal froze the accounts and the court ruled that they had not provided sufficient 'notice' to the account holders.

 

[storybookjim]

Please excuse my ignorance. I don't want to guess. What does "TOS" stand for? Thank you.

 

[JETX]

Please excuse my ignorance. I don't want to guess. What does "TOS" stand for? Thank you.

Terms of Service.
aka "Terms of Conditions".

 

[storybookjim]

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Hello; I am an eBay seller and I also have a Paypal business account. Many people have had problems with Paypal but that is because they do not read the rules and understand them. This is refelected by the number of people who only accept money orders or other forms of payment on eBay. If a buyer has a problem with an item and it is covered under Paypal buyer protection, Paypal does have the right to limit or restrict an account while they investigate. It is unfortunate when a buyer takes that route without contacting the seller first and allow the seller to attempt to solve their problem but it happens. It has been my experience that Paypal will discuss your problem with you in person and explain the problem, why not try calling them on the telephone and talking to them rather then depend on email or fax. You may get a more complete answer.

Thank you for your response. At issue here is not so much account restriction but the timing of same. Is it appropriate to impose a restriction while auctions are underway? Short answer: yes. Long answer: no, not if the subject of the restriction has a documented history of excellent customer service which could be damaged by a sudden, unexplained restriction.

Good communication with customers is a key element to any successful business. I see how PayPal does it. I watch my kid do it. He's 18. In the long run, my son will survive this attack because he understands how important the customer is. PayPal? My "hunch" is that the competition will soon swoop in and eat it's lunch because of the way it treats its customers.

Perhaps this is not a legal issue at all. Maybe it's just business-as-usual on the frontier of online auctioneering.

 

[storybookjim]

It appears that a fraudulent $5100 transaction took place between two other EBAY members and my son unwittingly facilitated it with his PayPal account. We have a mess here and I have no idea where this may go.