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Can eBay continue to force sellers to offer PayPal as an option? E-mail
by Stan Beer   
Monday, 16 June 2008
A quick visit to the US eBay site reveals that the majority of sellers offer PayPal as an option. However, there are some who choose not to.

It is unlikely that eBay could force sellers in the US to offer PayPal as an option because it is clearly a case of third line forcing. What is third line forcing?

To quote directly from leading Australian law firm Mallesons:

"Third line forcing occurs when a supplier places a condition on the supply of its goods or services that the customer must acquire goods or services of a particular type from a third person nominated by the supplier."

In this particular case the supplier is eBay, the customer is the seller, the third person is PayPal. This is the law as it stands today in Australia under the Trade Practices Act (TPA) - and it is pretty much the same in the US and the EU.

It is fairly obvious that trying enforce a PayPal only solution for buyers and sellers on eBay Australia is a case of third line forcing. That's why eBay resorted to trying to gain statutory exemption from prosecution under the TPA through the ACCC's notification procedure.

eBay's attempt to gain immunity from prosecution under the TPA if it tries to go ahead with its PayPal only plans on July 15 has almost certainly failed.

The question then is whether FORCING eBay Australia sellers to offer PayPal as an option is also a case of third line forcing? Please read on to page 3.



 
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The Beerfiles IT BLOG BeerFiles is an in-your-face and sometimes irreverent blog concerning all things to do with IT, technology, people and the media from the point of view of a hard boiled technology journalist and commentator.