Stan Beer
Monday, 16 June 2008 16:35
Opinion and Analysis
Page 2 of 3
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.
