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Consumer Reports Survey of eBay Users Reveals Online Auction Seller Deception and Pitfalls Can Be Hard to Avoid

Posted on: Monday, 2 July 2007, 18:17 CDT

YONKERS, N.Y., July 2 /PRNewswire-USNewswire/ -- With 100 million items on sale, eBay is the king of online auctions. But almost half of the eBay buyers that Consumer Reports surveyed encountered deceptions, according to a report in the August issue.

Buyers indicated that some sellers took their money and ran, failed to disclose key details about the merchandise, or overstated the item's condition. However, deceptions weren't the only pitfalls for folks to avoid when participating in an online auction. Although eBay prohibits trade in illegal goods, buyers can end up with unsafe products. CR's secret shoppers had no problem buying lawn darts, a game banned in the U.S., and they tracked down car seats, strollers and other child products recalled for possible safety defects.

"eBay has 2,000 staff members policing its site around the clock, but with 6.4 million new listings per day, their employees can't find all the iffy auctions and shut them down instantly," said Tod Marks, Senior Editor for Consumer Reports. "Buyers must take precautions and learn as much as possible about who they are dealing with."

To help online auction buyers play it safe and win, the Consumer Reports National Research Center recently asked more than 2,500 subscribers to http://www.consumerreports.org/ about eBay purchases in the past year. Among the findings:

-- Despite their complaints, 70 percent of those surveyed were highly satisfied overall when buying on eBay. About 90 percent of purchases arrived on time, were accurately described and were perceived a good deal. Nearly half of respondents characterized eBay as an excellent source of hard-to-find items. -- Forty percent of survey respondents termed eBay fair or poor for help and customer support. Most victims of unscrupulous sellers tried to fight back, but of those who tried to settle problems with the seller directly, which eBay recommends, only 38 percent were successful. -- PayPal, owned by eBay, was by far the most popular payment method and was used for 89 percent of the purchases in Consumer Reports survey. -- Complaining directly to eBay authorities satisfied 60 percent of survey respondents who took that action. But the most effective way to deal with dishonesty was among the least used: filing a formal complaint with PayPal. Although only 23 percent of unhappy respondents took that step, 66 percent of those who did said it worked. A site for sellers: -- Sixty-four percent of the 700 survey respondents who sold on eBay in the past year were highly satisfied with their transactions. -- Twenty-seven percent of sellers said their auction ad cost far more than expected. -- Only about 10 percent of respondents said their freight costs exceeded those computed by the site's shipping calculator. Avoiding Common Pitfalls

Online auction aficionados can't eliminate the risk when dealing with strangers, but they can lessen it. Consumer Reports offers the following tips to protect folks from traps and pitfalls:

Check Feedback. The most important step buyers told CR was to check feedback. More experienced buyers did extra research requesting more photos from the seller. eBay recommends trading with members that have a high positive feedback score. Look for at least 99 percent.

Avoid Shady Sellers. Go beyond the screen name to verify seller's identity by email and confirm address and phone number. Before bidding buyers should determine shipping cost, understand auction terms and return policy, and check whether the seller has changed identities. Only 13 percent of survey respondents said they always take this precaution.

Comparison Shop and Read Between the Lines. To determine if a new item is a real bargain, consult Web sites such as Shopzilla and Yahoo Shopping. Older collectables generally have at least one reputable source for information. If needed, consult an appraiser. Insist that the seller provide proof of authenticity and condition. Some sellers might dangle words such as "genuine," but look for terms such as "inspired by," indicating the product is a knockoff.

Bid Smart. Establish a top price and stick to it. Survey respondents cautioned about overbidding, reasoning that the object of their affection would probably turn up again. Proxy bidding can make it easier to stick to a budget. It may have helped the 40 percent of respondents who said they lost track of an auction deadline during the past year.

Keep your reputation. A bid is binding. Retractions by a buyer or seller are allowed only under special circumstances. Those who back out of deal could have their accounts suspended and their feedback reputation damaged.

Don't bite on phishing schemes. E-mail messages that appear to be from eBay and ask for sensitive information are designed to hack into your account. Don't click on any link and don't respond. eBay never makes such e-mail requests and the site provides Account Guard downloads to help folks avoid getting stung.

The complete report, with more helpful information for online auction buyers, tips for eBay sellers, and advice on the best ways to pay for items you've won is available in the August issue of Consumer Reports, on sale July 3. A portion of the story is also available at http://www.consumerreports.org/.

(C) Consumers Union 2007. The material above is intended for legitimate news entities only; it may not be used for commercial or promotional purposes. Consumer Reports(R) is published by Consumers Union, an expert, independent nonprofit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves. To achieve this mission, we test, inform, and protect. To maintain our independence and impartiality, Consumers Union accepts no outside advertising, no free test samples, and has no agenda other than the interests of consumers. Consumers Union supports itself through the sale of our information products and services, individual contributions, and a few noncommercial grants.

Consumer Reports

CONTACT: C. Matt Fields of Consumer Reports, +1-914-378-2454,cfields@consumer.org

Web site: http://www.consumerreports.org/

Source: PRNewswire-USNewswire

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