eBay has published a statement on its Australian auction site (ebay.com.au) and e-mailed those members with a policy update in response to the ACCC actions reported on last week. It appears that the debate has now been framed as “anti-competitive” by the Australian Competition and Consumer Commission, with eBay’s retort to the ACCC’s objection as one that “undermines online consumer protection”. eBay has delayed it’s previously announced plans by one month.
This is an update to the last article (Setback for “PayPal-only” eBay Policy in Australia), in which it was reported that the ACCC had issued a draft notice expressing concerns about eBay’s pending changes in regards to its auction service and PayPal, which eBay acquired in 2002.
As reported last month (see “PayPal Only” eBay Developments In The News), eBay announced that, beginning mid-June, PayPal would be the only method of payment permitted on eBay transactions taking place in Australia. This move by eBay has now been delayed one month following the notice filed by the ACCC.
The e-mail below was sent to Australian eBay members yesterday:
Text Version:
An Important Update
As you may be aware, a number of changes were scheduled to come into effect on eBay.com.au on 17 June 2008.
Most of these changes have been delayed by almost one month and are now scheduled to commence on 15 July 2008.
PayPal Buyer Protection will still increase to $20,000 on 17 June 2008.
What does this mean for you?
Sellong on eBay.com.au
Current policies regarding accepted payment methods still apply. This means PayPal is required on all listings on eBay.com.au. Other payment methods (i.e. bank deposit, cheque/money order) may also be offered until 15 July 2008.
As previously communicated any listings that do not comply with eBay’s Accepted Payments Policy will be removed. We strongly recommend that in order to ensure your listings comply with the Accepted Payments Policy you remove any details of payment methods other than PayPal or pay on pick up within the item description. Listings that have other payment methods offered within the payment options field will be allowed to expire as these options will not be displayed to buyers from 15 July 2008.
There are a small number of categories where PayPal is not mandatory. There are also some categories that do not qualify for PayPal Buyer and Seller Protection. Learn more about these excluded categories.
Buying on eBay.com.au
As mentioned PayPal Buyer Protection will still increase to $20,000 on 17 June 2008.
To ensure you benefit from PayPal’s Buyer Protection Policy, eBay strongly recommends you use PayPal when paying for your purchases on eBay.com.au.
From 15 July 2008 the available payment methods will be limited to PayPal, Visa/MasterCard, or pay on pick up.
The decision to delay these changes was made by eBay following the Australian Competition and Consumer Commission’s (ACCC) draft notice issued on Thursday 12 June 2008.
eBay released a media statement on Friday 13 June regarding the ACCC’s draft notice.
Read eBay’s statement and community announcement.
Please note that some of our onsite communications will still refer to changes taking place on 17 June 2008. These communications are being updated and should reflect the new date of 15 July 2008 within the coming days.
Regards
The eBay Team
This is the June 13, 2008 announcement on the eBay.com.au site referenced above:
13 June 2008 | 05:08PM EST
eBay has released a media statement regarding the ACCC’s draft notice.
The statement reads as follows:
ACCC draft notice undermines online consumer protection
eBay will continue to fight for safety benefits for consumers
13 June 2008: eBay challenges yesterday’s Australian Competition and Consumer Commission’s (ACCC) draft notice and is disappointed that the ACCC’s current view delays the opportunity to provide consumers a more secure way to shop on eBay.com.au with confidence.
eBay intends to work with the ACCC and hopes to achieve a final outcome which has the safety and security of eBay’s members as its paramount objective. eBay will delay the removal of other payment methods from the site until Tuesday 15 July.
PayPal offers consumers a range of payment choices, including bank transfer and credit cards. It’s a safer and easier online payment system that significantly enhances protection for eBay buyers and sellers.
eBay is pleased to confirm that PayPal buyer protection will jump to $20,000 on eBay.com.au for purchases paid for using PayPal from Tuesday 17 June.
eBay believes the consumer benefits of this initiative are worth fighting for on behalf of its buyers which will ultimately benefit sellers.
What does this mean for you?
PayPal Buyer Protection will still increase to $20,000 on 17 June 2008.From 15 July 2008, the only payment methods sellers may offer on eBay.com.au will be PayPal and pay on pick up.
Selling on eBay.com.au
Current policies regarding accepted payment methods do still apply. This means PayPal is required on all listings on eBay.com.au. Other payment methods (i.e. bank deposit, cheque/money order) may also be offered until 15 July 2008.As previously communicated any listings that do not comply with eBay’s Accepted Payments Policy will be removed.
There are a small number of categories excluded from these changes. Learn more about these exclusions.
Buying on eBay.com.au
To ensure you benefit from PayPal’s Buyer Protection Policy, eBay strongly recommends you use PayPal when paying for your purchases on eBay.com.au.From 15 July 2008 the available payment methods will be limited to PayPal, Visa/MasterCard, or pay on pick up.
Please note that some of our onsite communications will still refer to changes taking place on 17 June 2008. These communications are being updated and should reflect the new date of 15 July 2008 within the coming days.
Regards,
The eBay team
I don’t know that eBay’s statement that their basis for PayPal-only requirements – as a “fight for safety benefits for consumers” – can be accepted as a credible position given the number of existing pro-consumer eBay policies that are not related to PayPal that are not actively enforced.
In any event, I will continue to report updates to this story and other eBay/PayPal policy developments. Check the “PayPal & eBay Policy” sub-category for all related articles.
Jason De Bord