eBay Ethics Questioned in Counterfeit Product Sales

Duped eBay buyers never told about deceptive and dangerous products

March 30, 2015, Los Angeles, CA - As a consumer, you would expect to be notified that you may have purchased a dangerous, fraudulent or deadly product on eBay^® (EBAY). Unfortunately, that doesn't happen. And, it didn't happen when General Motors (GM) discovered ignition switch problems, or airbag manufacturer Takata (7312:JP) buried dangerous airbag problems for years. People were hurt, and people died.

Recently, eBay publicly admitted to allegations of deleting negative feedback, blocking accounts, changing resolved dispute cases, overturning refunds and removing counterfeit comments and warnings protecting consumers from dangerous products. The allegations emerged as part of a nine month investigation and over 250 counterfeit product purchases from eBay by The Counterfeit Report ^®, a popular consumer protection website.

The Counterfeit Report purchases included counterfeit Apple iPhone chargers, which have been implicated in starting fires, injuries and a death, as well as over-the-counter (OTC) drugs, computer electronics, children's toys, fragrances, and auto parts. Even products bearing a manufacturers trademarked name that never existed in the manufacturer's product line were sold on eBay.

Here are just a few fraudulent, dangerous or potentially deadly counterfeit products purchased on eBay by The Counterfeit Report and remain listed. Ironically, The Counterfeit Report is alerted to some these counterfeit products using eBay's own automated buyer notification system.

Actual counterfeit products purchased from eBay sellers;

	Your life literally rides on this auto part. This counterfeit Honda/Acura lower control arm purchased on eBay is critical in keeping the rear wheels attached to the vehicle. The authentic Group-A Autosports part is forged from aircraft-quality 2024 billet aluminum and never offered in the color shown. Your life rides on whatever this counterfeit part is made from. But the counterfeit is offered on eBay. The seller of this counterfeit suspension part has sold dozens to unsuspecting eBay buyers and was repeatedly reported to eBay, yet remains. Counterfeits damage the legitimate manufacturer's brand name and reputation, and in this case may be dangerous or deadly.
	Counterfeit Apple iPhone® USB Chargers have damaged equipment, caused injuries, fires and one death, yet are common on eBay. Could you identify this counterfeit Apple charger purchased on eBay? Over 4,100 have been sold by just one of the many sellers on eBay. eBay sellers may claim an authentic Apple iPhone® charger in the listing, but send a counterfeit. The counterfeit UL mark shown here further deceives consumers, but counterfeit products are not evaluated by UL for safety. The Counterfeit Report purchased various counterfeit "Apple" Chargers from eBay sellers and promptly submitted complaints to eBay, yet the sellers remain and the dangerous counterfeit product listings continue.
	Counterfeit memory cards may damage your equipment, destroy data or your once in a lifetime photos. Consumers are easily deceived by counterfeit memory cards which are difficult to detect without test software and usually have much lower memory capacity than stated on the packaging or displayed by your device. This fake SanDisk® 64GB micro SDHC memory card purchased on eBay does not exist in the SanDisk product line, and is confirmed by SanDisk to be a fake. In fact, a 64GB capacity SDHC memory card is not even a product available in the industry, yet is listed on eBay. Look closely and you will see the package is marked SDHC, but actually contains an SDXC labeled memory card. While an obvious fake, eBay inexplicably ruled in favor of the seller in the counterfeit product dispute case and removed the "counterfeit" feedback for the seller who remains active on eBay.
	Counterfeit fragrances are common on the internet and eBay. Consumers would be alarmed to know that counterfeit fragrances and cosmetics have been found to contain hazardous ingredients including arsenic, beryllium, DEHP (a plasticizer with health risks) and cadmium (a carcinogen), urine and antifreeze, along with high levels of aluminum and dangerous levels of bacteria. Is this something you would want to put on your body?
	Several counterfeit versions of the popular children's Rainbow Loom® craft kits were purchased on eBay. They are unsafe for children, may shatter into sharp edges and have not been tested in accordance with U.S. Toy Safety Standards (they may contain lead and other dangerous substances). Counterfeits do not comply with any ASTM, CPSIA, EU, or Japan's toy safety standards.

The eBay facade created to appease inquiring reporters quickly vaporized in less than a week when Director of Global Policy, Gary Fullmer, and Senior Manager of Global Brand Protection, Daniel Shapiro backtracked on their commitment to The Counterfeit Report for reform to protect consumers. Calls and emails still go unanswered, dangerous product sales continue, counterfeit sellers remain, and eBay's obstructionist practices prevail.

The Counterfeit Report research highlighted a woefully inadequate, understaffed and dysfunctional business process for handling fakes, dishonest buyers and sellers. Consumers rarely can identify counterfeits, and when they do, they are faced with a gauntlet of confusing challenges leading to eBay system failures, arbitrary decisions and conflicting instructions. Previous buyers of the identified counterfeits are not notified by eBay they may have a fake, be in danger, or eligible for a refund.

Manufacturers are vocal that not enough is being done to stop counterfeits on e-commerce websites. While, individual listings may be identified and removed in what is best described as a whack-a-mole process, they just pop up again with the same sellers.

Even when sellers admitted to selling counterfeits, eBay ruled in favor of the seller, removed negative feedback or demanded the counterfeits be returned to the seller -- a violation of law and against eBay policy. Returning counterfeits simply allows the product to be recycled and sold to the next unsuspecting eBay consumer.

eBay earns over $2 billion in profits and needs to do more than the bare minimum to stop counterfeits on its website. The eBay consumer would be much better served if eBay put consumer protection before profits with aggressive proactive research, harsh penalties for sellers, and appropriately staffed anti-counterfeiting efforts.

Carl Icahn, a 7% eBay shareholder, told Forbes last year "The complete disregard for accountability at eBay is the most blatant we have ever seen."

It couldn't have been said better…