Rick Spector of Stairway to the Stars sent me a link to the following article on the Maine Antique Digest (free registration required):
“An Ax to Find: Is PayPal Warehousing “Not Genuine” eBay Lots in Dallas?“.
According to the research and reporting of the author of the article, David Hewett, an eBay seller lost a PayPal dispute filed by a buyer who claimed that an item (a Native American Tomahawk) – won on eBay, paid for via PayPal, and shipped to the buyer – was “not authentic”. Per the article, the seller offered to send documentation to PayPal to prove that the piece in question was authentic; PayPal replied that it was not necessary. Weeks later, PayPal ruled on the dispute in favor of the buyer, closed the dispute, and debited the amount required to make the buyer whole from the seller’s PayPal account. The seller asked PayPal for the piece to be returned to them, and were first told it was destroyed, then told it was in PayPal custody in Dallas, Texas. After further discussions, the seller was purportedly sent the following e-mail from PayPal’s Protection Services Department:
Unfortunately, this item was not verified as being authentic. Since the buyer provided valid documentation that shows the item is not authentic, the item cannot be returned to you. PayPal and eBay policy prohibits the sale of items where a seller has not verified authenticity. We encourage you to work directly with the buyer for further resolution.
PayPal takes the privacy of our customers’ information very seriously and will provide information only in accordance with the terms of our Privacy Policy. In accordance with this policy, any information obtained during our investigation can only be provided in response to a subpoena, warrant, order of a court-appointed receiver or other comparable legal process.
Please review our Privacy Policy in order to better understand our commitment to maintaining our customers’ privacy, as well as our use and disclosure of customer information.”
Assuming the above is accurate, it raises many questions, beyond the most immediate concern – the prospect of a seller on eBay having the funds for a transaction debited by PayPal and not having the merchandise returned (following the reversal of the transaction from a payment standpoint).
How do eBay and PayPal policies interrelate, given that PayPal is “an eBay Company”?
Are these policies designed in such a way as to allow indefinite confiscation by PayPal of items they deem “not authentic”?
If items are truly confiscated, what happens to them? Where are they? How are they stored? Who “owns” them? Under what context or circumstances are they held?
How does the prospect of PayPal holding merchandise sold on eBay indefinitely, on the basis of a lack of “verified authenticity”, hold up to legal scrutiny?
Which specific eBay and PayPal policies, pertaining to the prohibition of inauthentic items, outline confiscation as a potential consequence? In searching PayPal’s Help Center for the terms “authentic” and “authenticity” a response of “No Answers Found” is returned.
What is the internal PayPal process for determining authenticity of a variety of collectibles and other items to which authenticity is at issue? Who at PayPal is equipped to make such complex determinations on such a wide variety of specialty items?
In regards to original props and wardrobe, the notion of PayPal confiscating pieces sold on eBay and paid for via PayPal, subsequently proven to PayPal’s (unknown) standards by a buyer to be inauthentic, has potentially huge ramifications on the hobby.
Jason De Bord