Thursday, August 21, 2008

RBA goes after Ebay & Paypal

Paypal is only safe payment method? Ebay Claims!

THE Reserve Bank has issued a stern warning to online auction giant eBay Australia, urging it to stop forcing PayPal onto its sellers.

In late July, the seller group wrote to the RBA requesting the bank block eBay from mandating the use of PayPal on every (sales) listing. They claimed eBay duped customers into thinking that PayPal was the only safe payment method available.

Throughout the site eBay portrays PayPal as the only safe payment method and inferring that all other methods are unsafe. Further, this message is reinforced through media advertising and statements in media interviews.

They advertise a buyer protection scheme for PayPal that is entirely illusory. Protection in the form of reimbursement of lost funds is only forthcoming if PayPal can recover it from the seller.

In the past eBay users have complained to the competition regulator that the website allegedly misled users into thinking that PayPal, owned by eBay, was the only payment method by displaying it prominently.

"Consistent with this, the bank will shortly be holding discussions with PayPal with a view to seeking the removal of these rules," the RBA said today. - Source - Australian IT

Well Done Reserve Bank Australia!

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