The site offers deals aplenty, but the golden question is: what legal recourse does one have if you become a victim of a fraud? eBay refuses to get directly involved — it acts only as an intermediary between buyers and sellers and is not a traditional auctioneer. Indeed as, Section 19 of the Electronic Commerce (EC Directive) Regulations 2002 explains, the site can be shielded from any liability as long as, when informed of any litigious items being sold, it acts “expeditiously to remove or disable access to the listing in question”. So in the absence of eBay’s liability for the items sold on its site, what next?

Any course of action will depend on whether you are buying from an individual or one of the growing number of eBay-based businesses, from sole traders to multinationals. The key here is that, since eBay’s business model is sustainable only if parties rely on the site for communication, you will not know the real identity of the other party until you are committed. The website, whether it is eBay.co.uk or a European counterpart, will also influence the course of action.

If buying on the eBay.co.uk website, and from an individual, there is little protection. Under the Sale of Goods Act 1979, the seller’s only obligation is to deliver the goods matching the description given. A listing advertising a PlayStation box could result in your receiving a cardboard box.

If buying from a business, you will be protected by the Consumer Protection (Distance Selling) Regulations 2000. You should benefit from precise information on the eBay listing that includes a description of the main characteristics of the goods, the price including all taxes, full delivery costs and any arrangements for payment or delivery. You should also be informed of your right to cancel which means that you can return the goods within seven working days from the day after you received them, or seven working days from the date of the contract for services. Bear in mind that for audio and video recordings or computer software, you can cancel only if the goods are unsealed.

Once the sale is concluded, you should be given all relevant information, as well as details on how to exercise the right to cancel. For example, this includes an indication of who should bear the cost of returning the unwanted goods, the geographical address of the place of business of the supplier to which you may address complaints and any information about after-sales services and guarantees. The period for your right to cancel will start only the day after the information is received, even if you have already received the goods. Note that for services, you cannot cancel if you have agreed to the performance of the contract starting before the end of the withdrawal period. If you exercise your right, the business must reimburse you within 30 days of a cancellation notice. Any charge the supplier may apply cannot exceed the direct costs of recovering the item.

This protection is all well and good but it will be of no use against genuine fraudsters who disappear with your money. The only approach here is of caution — and prevention. Whether dealing with an individual or a business selling goods on eBay, always check the credentials of the seller, keeping in mind that eBay accounts can be hacked into or created by fraudsters, and ask as many questions of the seller as possible. Genuine sellers do not mind giving information about the goods. In the case of World Cup tickets, it is true that Fifa allows some transfers and that it is possible for genuine ticket-holders to resell tickets. However, there are conditions attached.

For those who, despite prudence, have been victim of a rogue trader or fraud, recovering funds becomes a priority. If you paid by credit card, you can require the card company to reimburse the money. Under Section 21 of the Consumer Protection (Distance Selling) Regulations 2000, the card issuer should reimburse all sums resulting from fraudulent use of the card. This applies only to transactions between the consumer and a business, but many credit card companies now provide this service without any quibble when the transaction occurred with another individual. If the seller was using Paypal (eBay’s e-money service), you could also talk to Paypal and ask for reimbursement. However, Paypal’s protection conditions are limited and may not work in all instances.

Regardless of the final outcome, those who have been defrauded should also consider informing eBay, their local trading standards and their local police. The latter two are often able to secure criminal convictions if given the appropriate information and eBay may be able to take action to avoid the same thing happening again.

Dr Riefa is a lecturer in law at Brunel University

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