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Feb 02, 2005 -- ID theft and auction fraud growing out of control

The FTC has published its list of the No. 1 consumer complaints out there today. People made complaints in a number of areas, but only two had real statistical significance. Identity theft was No. 1, followed closely by auction site fraud. And when anyone says “auction site fraud,” it means eBay. eBay has been a fast-growing enterprise that has recently raised prices, and customers are being more disgruntled. Clark thinks eBay is hurting itself by failing to police its marketplace and protect its customers. It’s a brilliant idea. But because of eBay’s inability to protect users, buyers and sellers must be extra careful. Therefore, consumers must realize that they may lose their money if they enter into a transaction. It’s up to eBay whether it wants to care. But you need to know what could happen before you do business on the site. With larger transactions, it is buyer (and seller) beware. Clark doesn’t think this business model will work for long with eBay. But for now, it’s up to you.

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