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EcommerceBytes-NewsFlash, Number 1829 - July 08, 2008 - ISSN 1539-5065     | Next
ACCC Says eBay PayPal Requirement Not a Concern
By Ina Steiner
EcommerceBytes.com
July 08, 2008




eBay sellers in Australia have voiced concern over eBay's requirement that they accept PayPal on all transactions. But the ACCC government regulatory agency told AuctionBytes on Monday the requirement would be unlikely to raise trade practices concerns.

Many readers have weighed in on eBay's unsuccessful attempt to make its Australian site PayPal-only. Some saw the ACCC's involvement as a victorious display of consumer rights, others saw it as not going far enough.

On the AuctionBytes blog, a reader wrote, "eBay Australia is still forcing sellers to offer PayPal, and they have a new rule that says you're not allowed to state that you prefer any other method of payment."

Another said of eBay's notification withdrawal, "This is a stepping stone." The commentor went on to say,"Victory isn't reach until Google Checkout is allowed for payment," referring to eBay's current ban on Google's payment service.

eBay had announced in April a two-stage plan to ban all payment methods on its Australian marketplace other than its own PayPal service. eBay recently withdrew its notification after the Australian Competition and Consumer Commission (ACCC) said consumers should choose whether to use PayPal for their transactions, but it has continued to allow eBay to require that all sellers accept PayPal.

Asked if the agency would look into eBay's Stage 1 requirement, ACCC spokesperson Brent Rebecca said, "It was a requirement that traders make available PayPal among the payment choices offered, (that) is in itself unlikely to raise trade practices concerns. The ACCC would be concerned over any misrepresentations made in relation to such a requirement, or further conduct which restrains traders' ability to offer other payment methods."

He said the ACCC process concludes when eBay's notification is withdrawn. When asked if the ACCC would open up a case if eBay users did make charges of misrepresentations or confusion with regard to payment services, Rebecca said, "We wouldn't be able to comment on any investigations or any complaints we receive."

The ACCC posted minutes from the pre-decision conference held before eBay withdrew its notification.

Fran Foo has been covering the story for Australian IT and attended the meeting. Foo reported on Tuesday that eBay users have complained about the prominence of the PayPal logo during checkout, "while other payment methods are buried at the end of the page," giving an impression that PayPal was the only payment method. Foo quoted an ACCC spokesperson as saying, "The ACCC is aware of concerns being raised about current conduct of eBay and is considering these carefully. Should the ACCC form concerns over the conduct it will not hesitate to pursue these with eBay."

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