Criticism of E Bay - EBay Requires Sellers To Use PayPal - Australia

Australia

In April 2008 eBay announced an introduction of a 'PayPal only' policy in Australia. The new policy would have meant that sellers will only be able to offer PayPal or cash payment on pick-up as payment methods. eBay claims that PayPal is the most secure method of payment.

Under the Australian Trade Practices Act 1974, it is unlawful for a company to require the use of a third party's products or services in order for a person to deal with the company, known as Third Line Forcing. eBay submitted a notification under the Act, which provides automatic exemption from this provision unless the notification is subsequently revoked by the Australian Competition and Consumer Commission (ACCC).

As part of its assessment of the notification, the ACCC called for submissions from interested parties. This attracted a record number of complaints from eBay members, banks, Google, and members of the business community and the Reserve Bank of Australia. During this period, rival auction site OZtion experienced a record number of new members.

The ACCC completed an initial draft proposal to revoke eBay's notification, stating that it believed consumers were in a better position to judge risk on individual transactions than eBay's management and has ruled the plan anti-competitive. However, before a final decision could be announced on July 3, 2008, eBay announced that it had withdrawn the notification to the ACCC and shelved its "PayPal only" plans.

Read more about this topic:  Criticism Of E Bay, EBay Requires Sellers To Use PayPal

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