The Australian Broadcasting Corporation ran a report that highlighted eBay Australia's largest case of fraud. The 7:30 Report television program profiled a victim of eBusiness_Supplies, whose business collapsed over the summer, allegedly leaving buyers in the lurch. From the transcript of The 7:30 Report:

KERRY BREWSTER: Although PayPal set up a special compensation fund, promising refunds for all, Brian Crooks says months of frustrating correspondence with eBay and PayPal has left him feeling ripped off again.

BRIAN CROOKS: When you speak to them by the phone you're told that it'll be referred to another department, and then they keep asking you for details which you have already sent.

And then they keep asking you to file a dispute, which you've already filed, and then arbitrarily they just sent me an email to say "your dispute is now closed".

DAN FEILER: My understanding is that the vast majority of buyers were paid by PayPal. And that if buyers still haven't been paid they can still contact PayPal

The case came to light after eBay Australia had tried to impose a PayPal-only policy on its site. eBay cancelled those plans after government regulators indicated their intention to prohibit eBay from doing so. According to the Australian IT news site, the Reserve Bank of Australia (RBA) is looking into eBay's policy requiring that all sellers accept PayPal.

http://www.abc.net.au/7.30/content/2008/s2380759.htm