Ebay Policy Sides With Sellers In Fake Goods Debate
http://www.lawsays.net/articles/2829/1/Ebay-Policy-Sides-With-Sellers-In-Fake-Goods-Debate/Page1.html
Jane Dawson
Source verified importers and wholesalers, manufacturers and distributors, dropshippers and dropshipping wholesale suppliers. Browse wholesale by country: Wholesale UK, Wholesale China and more. By Jane Dawson
Published on 06/1/2009
This article discusses how eBay is fighting counterfeits selling on its platforms, and how its policies are being constantly reviewed to meet both buyers, sellers and trademark owners best interests.
eBay has been under attack by makers of luxury goods for a number of years. Many high end manufacturers claim that eBay allows the sale of counterfeit products, damaging the reputation and revenue of the original manufacturers.
eBay has, in fact, been held liable for the sale of fake goods, to the tune of $60 million, to companies like Luis Vuitton and Christian Dior, based on a loss in a French court last year. eBay has been searching for ways to maintain a relatively restriction-free marketplace but afford enough protections to protect customers from unscrupulous sellers and itself from further losses in court.
As an online retailer, you are probably aware that many of eBay's policy decisions tend to favor the customer over the seller. For example, they recently adopted a policy that allows buyers to provide feedback about the buying experience but prohibits sellers from leaving feedback about buyers or responding to buyer claims that they believe are fraudulent. Against that backdrop, it was no surprise that eBay's most recent attempt at a policy change put sellers in a difficult spot.
In spring 2009, eBay announced a new policy that effective June 2009, requiring that a buyer who suspected an item purchased on eBay to be fake, to destroy the item before eBay would reimburse the buyer. eBay's policy said that for covered claims that meet the conditions and are not excluded, buyers are required to destroy an item if they claim it is not authentic. Once a buyer confirms destruction of the item, eBay will reimburse the buyer.
The response from sellers was immediate, loud and sustained. Sellers rebelled against the policy, pointing out that if a product was destroyed, it would not give the seller the opportunity to prove that the item was legitimate. Plus, it would be only too easy for the buyer to send a shredded, fake handbag to eBay and claim they received it while keeping the actual, genuine handbag the seller sent.
Since buyers may not necessarily place great value on maintaining an ongoing relationship with a seller, they have little to lose and much to gain by this strategy.
Somewhat surprisingly, eBay listened to its sellers and reversed the policy, instituting a different, broader minded approach that offers the sellers options as well. If the buyer believes that the product received is not genuine and cannot resolve the matter directly with the seller, they must return the product to the seller (eBay or seller pays postage) for a refund. If the seller is determined to be at fault for having sold a counterfeit product, it can be considered a violation by the seller of eBay's policy against selling prohibited items and penalties can be imposed. On the other hand, if eBay determines the buyer is not acting in good faith, eBay may restrict or eliminate their ability to return items or make future claims.
This new policy will help legitimate sellers protect their reputations and selling space on eBay. However, the unscrupulous retailer needs to beware eBay is very serious about eliminating fraud and avoiding any more expensive law suits.
eBay has, in fact, been held liable for the sale of fake goods, to the tune of $60 million, to companies like Luis Vuitton and Christian Dior, based on a loss in a French court last year. eBay has been searching for ways to maintain a relatively restriction-free marketplace but afford enough protections to protect customers from unscrupulous sellers and itself from further losses in court.
As an online retailer, you are probably aware that many of eBay's policy decisions tend to favor the customer over the seller. For example, they recently adopted a policy that allows buyers to provide feedback about the buying experience but prohibits sellers from leaving feedback about buyers or responding to buyer claims that they believe are fraudulent. Against that backdrop, it was no surprise that eBay's most recent attempt at a policy change put sellers in a difficult spot.
In spring 2009, eBay announced a new policy that effective June 2009, requiring that a buyer who suspected an item purchased on eBay to be fake, to destroy the item before eBay would reimburse the buyer. eBay's policy said that for covered claims that meet the conditions and are not excluded, buyers are required to destroy an item if they claim it is not authentic. Once a buyer confirms destruction of the item, eBay will reimburse the buyer.
The response from sellers was immediate, loud and sustained. Sellers rebelled against the policy, pointing out that if a product was destroyed, it would not give the seller the opportunity to prove that the item was legitimate. Plus, it would be only too easy for the buyer to send a shredded, fake handbag to eBay and claim they received it while keeping the actual, genuine handbag the seller sent.
Since buyers may not necessarily place great value on maintaining an ongoing relationship with a seller, they have little to lose and much to gain by this strategy.
Somewhat surprisingly, eBay listened to its sellers and reversed the policy, instituting a different, broader minded approach that offers the sellers options as well. If the buyer believes that the product received is not genuine and cannot resolve the matter directly with the seller, they must return the product to the seller (eBay or seller pays postage) for a refund. If the seller is determined to be at fault for having sold a counterfeit product, it can be considered a violation by the seller of eBay's policy against selling prohibited items and penalties can be imposed. On the other hand, if eBay determines the buyer is not acting in good faith, eBay may restrict or eliminate their ability to return items or make future claims.
This new policy will help legitimate sellers protect their reputations and selling space on eBay. However, the unscrupulous retailer needs to beware eBay is very serious about eliminating fraud and avoiding any more expensive law suits.