eBay Auctions & Consumer Guarantee

I noticed on another recent thread (on another topic) that board posters were indicating that goods purchased through eBay auctions were not covered by the same consumer guarantees as buy-it-now goods.

 

I just wanted to note that according to fair trading information on government websites, this appears not to be the case and that buyers of Australian businesses goods that are purchased through the eBay auction process, are covered by the same consumer guarantees as buy-it-now goods.

 

Some fair trading website facts that are easily located via google below, (my highlighting)

 

"Consumer guarantees do not cover goods bought at auction, where the auctioneer acts as an agent for the owner of the goods." 

 

"eBay sales are not considered to be an auction as eBay does not act as an agent on behalf of the seller. Therefore, eBay sales are covered by the consumer guarantees under the Australian Consumer Law"

 

 


@thecatspjs wrote:

 

I just wanted to note that according to fair trading information on government websites, this appears not to be the case and that buyers of Australian businesses goods that....

 

 



That is correct !

 

However, goods sold at auction by sellers that are NOT in business of selling those goods...are classed as "private sellers" and the consumer protection rules do NOT apply.

 

And that, my friend INCLUDES eBay and ALL other on line and off line auctions. If a seller lists an item for sale by auction and the seller does not sell that item or that kind of item as part of their "normal" business activities, then it is a "private auction sale" and not covered by consumer Law !


@this-way-up wrote:

@thecatspjs wrote:

 

I just wanted to note that according to fair trading information on government websites, this appears not to be the case and that buyers of Australian businesses goods that....

 

 



That is correct !

 

However, goods sold at auction by sellers that are NOT in business of selling those goods...are classed as "private sellers" and the consumer protection rules do NOT apply.

 

And that, my friend INCLUDES eBay and ALL other on line and off line auctions. If a seller lists an item for sale by auction and the seller does not sell that item or that kind of item as part of their "normal" business activities, then it is a "private auction sale" and not covered by consumer Law !


Indeed. Nonetheless, whilst consumer guarantees may not be in place in some situations, there are a range of remedies one can pursue in relation to private sellers, as there is still a contract in place. 

 

 

What contract ?

 

Do you mean the Paypal User Agreement that specifically and expressly states -

 

S7.6 You have no automatic entitlement to receive any payments under the PayPal Buyer Protection Policy.

 

and

 

S7.5 Where we are unable to recover the whole or part of your payment from the seller we may, in our absolute and sole discretion, decide to make a payment as a gesture of goodwill.

 

Or is it some other contract you refer to?

The sales contract between the seller and buyer - Sale of Goods Act.

I thought the response posted by coast_golf in another, quite recent thread explained very well that an eBay listing constitues a contract no matter if the seller is acting as a business or privately, that the contract includes the description, and that there are (lawful) remedies available if the goods don't meet that description (since there is more than one body that regulates consumer rights / protections / guarantees, and different things are handled by different bodies).

 

That's the way I read it, anyway. 

 

View solution in original post

Yes. I agree DG.


@this-way-up wrote:

What contract ?

 

Do you mean the Paypal User Agreement that specifically and expressly states -

 

S7.6 You have no automatic entitlement to receive any payments under the PayPal Buyer Protection Policy.

 

 


Another, semi-regular poster (tall_bearded - who may come along to clarify) with some legal expertise once explained (if I remember correctly) that PayPal can not guarantee buyer protection and/or refunds in all circumstances, and thus must word their agreement in that way, because they are not offering insurance (they are not licensed as insurance providers, and to do so would involve a whole lot of other legal implications). 

 

Yes...If the seller is a business.


@thecatspjs wrote:
The sales contract between the seller and buyer - Sale of Goods Act.

I am happy to be corrected...

But I think you will find the Sale of Goods Act is a UK (as in United Kingdom...like England and Wales etc) Act 🙂