Alex Zaharov-Reutt
Friday, 04 July 2008 14:22
Opinion and Analysis
Page 3 of 4
Much of the content of a letter an iTWire reader has sent to the ACCC concerning eBay's latest statements is as follows, and is reprinted with permission:
“I'm aware that eBay has withdrawn its notification and thus eBay has, for the time being, abandoned its plans to have PayPal as the only payment option available to users of eBay (i.e. stage 2 of the proposal).
“However, the ACCC needs to be aware that since withdrawing its notification eBay Australia's chief executive, Mr Simon Smith, appears to be using the media to communicate misleading information to eBay users and consumers generally.
“The thrust of this misinformation is to convey to eBay users and consumers that the ACCC has formally endorsed stage 1 of the proposal, namely, that eBay sellers must offer PayPal as a payment option. My reading of the relevant correspondence to date is that the ACCC has issued no such endorsement.”
”The ACCC would appreciate that the effect of Mr Smith's media statement will be to encourage sellers to list items on ebay incorrectly believing that they must offer PayPal. Similarly, unknowing buyers may believe that they are required, or better off, applying for a PayPal account.
“Clearly, both of these activities benefit eBay financially so there would appear to be no incentive for eBay to correct the misinformation, and perhaps every incentive for eBay to perpetuate it further through the media and in direct communications to eBay sellers and buyers.
“But just as importantly, with the withdrawal of eBay's notification, I am aware that many eBay users are now in the process of submitting formal complaints to the ACCC regarding stage 1 of eBay's proposal (together with complaints about other anti-competitive practices).
“With the above described misinformation in the market place some members may incorrectly conclude that the ACCC has endorsed stage 1 of the proposal and that submitting complaints relating to this now serve no purpose.
The letter continues on page 4.