As a result of a consumer complaint, Microsoft has begun a crackdown on illegal software being offered on auction sites, but the more interesting news from this is the lack of action once again by PayPal.. until of course the press gets involved..
This excerpt from The Australian newspaper – 22 Sep 2009:
Leigh Thomas purchased the software (MS Office) for $210 from a Queensland eBay seller on June 8 but discovered it was a counterfeit copy when the installation failed because the software was not authenticated by Microsoft’s online service.
On June 22, the 54-year-old Mr Thomas complained to eBay that the item was not as described because it was counterfeit.
The complaint was referred to eBay’s payment service, PayPal, which charges a fee to process payments on the vast majority of transactions on the auction website.
The PayPal buyer guarantee meant Mr Thomas could be reimbursed for the price of the software if he sent the package back to the seller via an approved delivery service.
However, this outcome did not satisfy Mr Thomas, who is also an eBay seller from Tweed Heads in northern NSW.
He wanted action taken against the seller to stop the sale of counterfeit goods.
“Too many people are getting ripped off by some rogue sellers on eBay, which is in my opinion destroying the value of eBay — and me being on it as a seller,” Mr Thomas said.
To proceed with the complaint, PayPal demanded proof the goods were counterfeit, but according to Mr Thomas it would not accept Microsoft’s assessment that the copy was not genuine.
An independent consultant or third party, which had to be hired at Mr Thomas’s expense, would need to verify the article was not authentic, PayPal wrote.
“To continue with the investigation of your complaint, we must request documentation to support your claim that the item is not authentic,” a PayPal employee wrote to Mr Thomas.
“Please obtain a document from an unbiased third party, such as a dealer, appraiser or an organisation that is qualified in the area of the item in question (other than yourself), which clearly identifies the item as not authentic.
“The document must specifically state how the item received differs from an authentic item and must include a detailed explanation of how the person evaluating the item determined that it is not authentic.”
By this stage, Mr Thomas had filed a complaint and signed statement with the police, and the copy of Office had been taken as evidence.
He provided the case number, police station location and name of the investigating officer, and offered to provide a signed police statement, but PayPal would not accept that as proof.
Two weeks ago, PayPal said it would not reimburse any cost for the software.
However, days after PayPal was contacted by The Australian, Mr Thomas was told he would be fully reimbursed and paid an additional $50 for the inconvenience.
PayPal refused to respond to questions about whether the buyer guarantee was being used as a cover to allow counterfeit goods to be sold on eBay.
Ebay’s payment service also would not comment on whether action had been taken against the eBay seller.
“In line with federal privacy laws PayPal Australia is unable to discuss individual cases,” spokesperwoman Kelly Stevens said. “PayPal co-operates and works with all levels of law enforcement to stamp out illegal activity.
“In rare instances where our dealings or procedures result in a bad customer experience, we would like to apologise. For PayPal our No1 priority is the customer and we are always looking at ways to improve our customer service.
“This situation has now been rectified and I would like to thank you for bringing this to our attention.”