NEW eBay is charging sellers that end auctions early A MUST READ

[Anonymous]

It has come to my attention that eBay has decided to charge a full commission for auctions that have been ended early with zero bids but bids have either been placed and removed by buyers or placed by buyers and removed by sellers in order to correct listings. This practice is not legal under any auction process to charge a commission when a sale has not been made. If an auction ends with 0 bids regardless of bids that have been removed this does not constitute a sale and therefore a commission for a sale can not be charged. One can not charge a commission on any auction that ends with 0 bids. This is quite clear in the rules of auctions in almost every State that requires a license to auction. I have researched and 36 States include these rules in order to use the auction process in their State. I have graduated from Florida Auctioneering School back in 1988 and held a license in several States and was bonded in the State of Virginia where I conducted Auctions I also partnered with an Auctioneer in PA and had many many auctions as well as working for Auction Companies in NJ, NY, PA DE, MD, VA, and FL. Not every State requires a license but those that do require any auctions conducted in their State to follow Auction law. 

I am reporting this as I find it to violate at least 36 State laws and as a member for 23 years on eBay I was led to believe that eBay is an honest Company that abides by the law. This newly developed concept of punishing sellers for ending auctions early by compensating themselves as though a sale has been made is disturbing. 

There is no reason to fabricate a sale and charge. commission for a non-sale. if eBay continues this sellers need to alert State representatives of this illegal practice. The internet is not exempt from State law. As sellers we have already been through this, eBay now charges us to collect State taxes. eBay tried for decades to get away with avoiding the tax issue and learned the hard way that States do not take kindly to abusing their laws. Here is the next level of State law abuse, sellers need to act quickly before this practice becomes embedded in the eBay system. 

[nobody*s_perfect]

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@Anonymous wrote: .... If an auction ends with 0 bids regardless of bids that have been removed this does not constitute a sale and therefore a commission for a sale can not be charged. .... 

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eBay decided to charge sellers a penalty fee when they disappoint potential buyers by ending an auction early after it has received bids. This policy has been in place for many years.  They could have set the penalty at any amount they wanted -- $1, or $100, or logically tied to the value of the item.  The penalty fee is a penalty, not a selling fee; it just happens to be that amount.

[ebooksdiva]

This is not new and it is clearly stated in the Policy for ending listings.Ending a listing | eBay

[bonjourami]

This is nothing new, when you cancel bids and then end the listing eBay will charge the final value fee as if it was a sale. This is to discourage sellers from disappointing bidders, and taking the sale off Ebay to avoid fees.

[monica-sells]

I am going to watch from the sidelines and see if this thread gets any traction. The overall basis for your post seems to be charging a fee for "0" (no activity) auction listings, yet they had activity that was modified by either the seller or the buyer, but then you meander into auction licenses and sales tax collection and abusing state laws.....

[fern*wood]

Just recently there was a thread protesting about a state trying to apply auctioneer rules to sellers on ebay that use the "auction" format.   This sounds like you agree with this premise---applying auction rules to online sellers using that format.

Is ending an auction format listing something you need to do often?

[tev4all]

eBay's site. Their rules.  

[Anonymous]

As I have worked in PA for multiple auction Companies I had a call in about the charges for commissions for auctions which was returned here is basically what I was told.  eBay does not hold a license in the State of PA therefore they are acting as an auction by charging a commission ( see PA auction rules on conducting auctions without a license.) if they simply took a commission for a sale that would be legal as the commission is for a sale but it is non specific as to the auction process and the owner is getting paid. That they clearly take a commission for an auction because the seller is not part of the sale makes it a violation. The seller is not part of the sale so eBay is the auctioneer charging a commission for the sale. They have placed themselves as the auctioneer by charging a commission on a sale that only they have made. The seller has no part of the sale if there are no bids. I have the details on how to start the  process of getting others who have been charged involved and we will ask the State to fine eBay for one violation at a time. These are fines for violating the State laws and not court cases   We then submit other violations one at a time. They will be fined for conducting auctions without a license and violating PA Auction law.  This is a direct fine and determination is made by the State. The  State has the ability to bar eBay from Auctioning in the State. I believe if enough complaints are filed  the chances are pretty good the State Attorneys office will step in. This should be pretty much the same scenario in all 36 States where eBay is charging an auction commission as though an auction occurred even  though it clearly has not as it ended with no bids. It is definitely a violation that stems from auctioning without a license within the States. eBay is collecting money for an auction as the only seller as they are the only party receiving money for the auction and they are determining how much money by a rescinded bid. It is quite an illegal process. 

Sections 734.3(a) and 734.20(a)(9)

N/A

[hartungcards]

I kook forward to the reply you get from your State Representative when you ask him/her to invest any time in getting your fees returned for an auction you ended early on eBay.  Please keep us posted.

[nobody*s_perfect]

Sorry; TL:DR.  I do know that this policy has been in place for at least a decade, so any substantive challenge would have happened by now. 

[Anonymous]

Not new does not make it legal you need to understand State Auction law not eBay law eBay thinks their laws supersede State laws but no one has the courage to contest eBay law. I am not asking for a class action at least not yet I want the States to determine eBay has conducted an auction as the only participant The seller gets nothing from the auction it ended with 0 bids but eBay determines a charge based on the removed bid making them the auctioneer. It is a very clear violation of Auction law. 

‘I intend to continue with other States and clear directions of how to stop eBay from this illegal process 

As I have worked in PA for multiple auction Companies

I had a call in about the charges for commissions for auctions which was returned here is basically what I was told.  eBay does not hold a license in the State of PA therefore they are acting as an auction by charging a commission ( see PA auction rules on conducting auctions without a license.) if they simply took a commission for a sale that would be legal as the commission is for a sale but it is non specific as to the auction process and the owner is getting paid. That they clearly take a commission for an auction because the seller is not part of the sale makes it a violation. The seller is not part of the sale so eBay is the auctioneer charging a commission for the sale. They have placed themselves as the auctioneer by charging a commission on a sale that only they have made. The seller has no part of the sale if there are no bids. I have the details on how to start the  process of getting others who have been charged involved and we will ask the State to fine eBay for one violation at a time. These are fines for violating the State laws and not court cases   We then submit other violations one at a time. They will be fined for conducting auctions without a license and violating PA Auction law.  This is a direct fine and determination is made by the State. The  State has the ability to bar eBay from Auctioning in the State. I believe if enough complaints are filed  the chances are pretty good the State Attorneys office will step in. This should be pretty much the same scenario in all 36 States where eBay is charging an auction commission as though an auction occurred even  though it clearly has not as it ended with no bids. It is definitely a violation that stems from auctioning without a license within the States. eBay is collecting money for an auction as the only seller as they are the only party receiving money for the auction and they are determining how much money by a rescinded bid. It is quite an illegal process. 

[hartungcards]

I don't have a clue about State Auction law, but I do know quite a bit about the Laws of Physics as they relate to an immovable object.

[Anonymous]

My point is eBay has become the auctioneer by charging based on a rescinded bid. They used the auction process to collect money and they do not hold a license in most States to do so. 

[hartungcards]

They didn't use the auction process to collect money, they used your failure to understand the policies you agreed to in the User Agreement to collect money.

[Anonymous]

If the seller was an actual seller and got paid then what eBay collects is a sale commission it is not clearly an auction.
What eBay is doing makes them the clear auctioneer. They would not know what to charge without using bids and no one else is getting paid except eBay making them the sole auctioneer. There is no partnership between seller and auctioneer.  This  makes it a very illegal auction sale as they determined a sale was made using bids that were rescinded. . We know no sale was made.  As eBay  holds no license to do this and States take their laws seriously, I believe that it will be rather easy to show eBay used the auction process to collect money and was the sole benefactor of that money. That is certainly violating the law.