EBay (aka “the eBafia”) is demonstrably a totally unscrupulous, dysfunctional, criminal organization!
How could that be, you ask? Well, with much effort and some multi-auction analysis, it can be very clearly demonstrated (see the following link) that shill bidding fraud by unscrupulous professional sellers on nominal-start auctions, is rampant on eBay auctions, and the executives “in the know” at eBay, unless they are actually even more naive than they apparently think all we simple consumers are, cannot but be aware of that criminal activity.
And, of course they will say they are not aware, because they do not want to be aware, because if they admit that they are aware of such criminal activity (which they cannot but be, and from which they are profiting), and they do nothing effective about it (which they don’t), then they are guilty of the crime of “criminal facilitation”. It’s as simple as that!
And, it can also be demonstrated that, contrary to their claims, they do not do anything proactive nor truly effective to prevent such criminal activity. Indeed, they have done the very opposite, during the second half of 2008 eBay introduced anonymous non-unique masking of bidding IDs, which serves no logical purpose other than to deliberately further obscure such criminal activity and aid and abet said criminal shill-bidding sellers to maximize their sale prices, thus maximizing eBay’s final valuation fee (FVF).
It’s even worse in the UK, where the form of bidder masking makes it simply impossible for buyers to detect the unscrupulous, sophisticated shill-bidding professional sellers that undoubtedly now infest eBay UK auctions. Needless to say sales by auction on the UK site have collapsed to a small fraction of what they used to be.
Is it any wonder then that, relatively speaking, buyers are staying away, and eBay’s marketplace business, the world over, is still going down the toilet?
From an eBay buyer’s point of view, the full ugly story of eBay, and the proof of eBay’s criminality, at
It is about time that some competent authority in the US shone a bright light under this slimy rock.
eBay: Dead Man Walking!
Then there is PayPal—about the only part of the eBay business that is not, relatively speaking, going backwards.
PayPal is an unregulated, unprincipled, systemically dysfunctional, amateur organization (just like its ugly mother, eBay).
PayPal and Bill Me Later are not a bank, are not regulated as banks are, do not subscribe the banks’ credit card code of ethical behaviour, and yet offer banking-type services, services that would be more appropriately and more competently carried out under the auspices of the real banking community (via their credit card organization partners).
The simple fact is that without the bankers’ knowledge of the entities involved in the transactions, PayPal, or any other non-bank provider, will always be handicapped. Non-bank providers will never guarantee anything for the buyer or seller because they simply cannot have the bankers’ level of knowledge of the entities involved.
The head turkey at eBay, ‘Noise’ Donahoe, has occasionally talked of the possibility of offloading PayPal, because he is just barely smart enough to know that when the major credit card companies do get off their butts and introduce a like card/terminal-less payments system to complement their credit card system, they will do it properly, and the dysfunctional PayPal will then sink like a stone—other than, possibly, on what is by then left of the Donahoe-shrinking eBay marketplace. Possibly, the banks may even let PayPal keep those problematic customers that the banks, who will always better ‘know’ the entities involved, might not likely allow a merchant-type facility.
If Donahoe has any brain at all he will be actively trying to sell PayPal to the banks to complement their credit card system; but I doubt the banks would want to lower their image any further by associating themselves with the likes of PayPal; not even for a peppercorn consideration would the banks touch such a dysfunctional amateur operation as PayPal, I suspect.
Does anyone then think that ‘all the banks’ are not watching this market segment with interest, and is it possible that PayPal could be having some negative effect on their credit card business? Why then would ‘the banks’ not be considering a like system to complement their existing card systems? The simple fact is that anything that PayPal can do ‘the banks’ can do better (read ‘properly’) and, after all, every internet banking user is already set up to receive such a service directly, efficiently and securely, from their bank.
Do we then need to offer the banks and the major credit card companies another such monopoly-type situation? Ideally not. But, having said that, within the credit card system the individual banks do (marginally) compete with each other on terms, interest rates, etc.
Regardless, it would be nice to have a card/terminal-less system that worked efficiently and effectively—as does the banks’ credit card system. Regrettably (or thankfully, some say), PayPal does not have such a partnership with ‘all the banks’ and so PayPal can never offer that same effectiveness.
My only surprise is that ‘all the banks’, via their credit card partners, have not yet offered their own system. When they do, I suspect that it will be bye, bye, PayPal—you most ugly of daughters. And, more importantly, we will then have a system that works properly, just like our credit cards do!
In support of the above comment I offer an introduction to the full sad/ugly story of eBay/PayPal at
How did this clown this clown Donahoe ever get to be CEO of a listed public company? Oh, that’s right, she who would be governor of California selected him. Donahoe is undoubtedly going to go down in US corporate history as the man who literally did ‘kill the golden goose’.
And, if you want a laugh or a cry (whatever moves you), take a look at this recent video interview of this clumsy, inarticulate, chimpanzee (the hand language tells it all) at