Ebay Inc (NASDAQ:EBAY) Accused Of Failing To Stop Scams As Another Buyer Loses £1,500


eBay Inc (NASDAQ:EBAY) is facing a backlash for what many have termed as the company’s persistent and deliberate failure to protect users from online scams as well as failing to take responsibility for several fake listings on its platform. The platform is rife with all types of shopping scams.

In 2017 alone, a total of 42,000 reports were made to Action Fraud, a fraud reporting service in Britain. The reported cases amounted to an average of £1,349.

Despite all these reports, a legal frame work, which was introduced 20 years as well as the company’s own terms and conditions allow it to distance itself from such fraud reports.

According to the e-Commerce Directive of 2000, a service provider has no control or knowledge of the information which is transmitted. It adds that the service provider cannot be held liable for the authenticity as well as the accordance of such information. The directive says that the site should move swiftly to remove or disable users’ access to such information after getting the actual information.

According to Sarah Miles, a partner at Nockolds law firm, the e-commerce giant relies on this clause to sanitize itself whenever it is accused of failing to protect its users. The company’s own terms and conditions also get the company off this responsibility.

Many have argued that although the company employed “techniques” that are meant to protect users, the whole task is difficult to undertake. Therefore, according to the company, it is not responsible for ensuring the truthfulness and accuracy of the information as well as the users who post it.

Thousands of users have opted for Facebook groups like eBay Vehicle Scam Alerts to warn each other. The group has over 5,000 members. They post suspicious emails which are purportedly used by criminals on the platform and report listings that are suspected to be scam. Most scams feature items with high value like vehicles.

The latest incidence involved Colin Labouchere, who lost £1,500 while attempting to buy an organ on the platform. He later discovered that the email belonging to the fraudster had been reported months earlier.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.