Abstract
This paper discusses the legal classification of online “eBay” auctions. The discussion has key implications on the scope of consumer protection law as sale by auctions are, for example, excluded from the scope of the Consumer Protection (Distance Selling) Regulations 2000. The paper uncovers that online “eBay” auctions cannot always be considered as traditional auctions and that eBay, as an intermediary, is not to be considered as an auctioneer. This creates difficulties associated with a distributive application of consumer protection laws such as the Consumer Protection (Distance Selling) Regulations 2000. Another set of difficulties is associated with a lenient legal regime applicable to the liability of eBay under the Electronic Commerce (EC Directive) Regulations 2002. The paper concludes that there is an urgent need to clarify the legal classification of online auctions and to rethink the liability of online auction sites to better protect consumers.
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Notes
Figures for the third quarter 2006, available online: http://investor.ebay.com/. (Oct. 31, 2006).
Section 4707.02 of the Ohio Revised Code (in Ohio Auctioneer Guide), accessible online: http://www.legislature.state.oh.us/bills.cfm?ID = 126_SB_99. (Feb. 6, 2006).
Note that all references to online auction sites’ terms and condition refer to the version in application on May 9, 2005 and freely available on the online auction site.
Tribunal de Grande Instance (District Court) Paris, 3 May 2000, [2001] E.C.C. 24.
Note that since this case was decided, Loi n° 2000–642 of 10 July 2000 abolished such monopoly in order to put French law in line with European freedom of movement of goods and services.
106 LT 512, PC at 518.
Tribunal de Grande Instance (District Court) Paris, 3 May 2000, [2001] E.C.C. 24.
[1973] QB 542.
Thus, whilst s. 57 requires the presence of a third party, Christina Ramberg (2002, p. 50, para 4.67 and 4.71) acknowledges, “there is no need to include a prerequisite of a human auctioneer in the definition of an auction.”
http://www.oft.gov.uk. (Oct. 10, 2007).
DTI, Fact Sheet, Internet Auctions. http://www.dti.gov.uk/ccp/topics1/facts/internetauctions.htm. (Jan. 13, 2006).
http://www.gildensart.com. (June 6, 2006).
http://www.the-saleroom.com. (Oct. 10, 2007).
http://www.thistleauctions.com. (July 4, 2006).
http://www.lastminute.com. Note that the site does not appear to conduct auctions any longer, yet still contains terms & conditions relating to the conduct of auctions on the site. (Oct. 10, 2007).
[1973] QB 542.
http://www.WorldWideAuctions.org. (Oct. 10, 2007).
Section 4707.01 and section 4707.02 of the Ohio Revised Code (in Ohio Auctioneer Guide), accessible online: http://www.legislature.state.oh.us/bills.cfm?ID = 126_SB_99. (Feb. 6, 2006).
Bundesgerichtshof VIII ZR 375/03, 3 November 2004.
The French wording is as follows: un mode objectif et automatique de determination de la personne du cocontractant et du prix.
Electronic Commerce Directive 2000/31/EC of 8 June 2000, OJEC L178/1, 17.07.2000.
http://auctions.yahoo.com/. (Dec. 1, 2006).
Zeran v. Amercia Online, Ltd (4th Cir. 1997) 129 F. 3d 327 (Zeran), cert. Den. (1998) 524 U.S. 937.
Lars Gentry v. eBay Inc. 121 Cal. Rptr. 2d 703 (cal App. 2002).
Supreme Court of the United States, 27 June 2005, N° 04–480.
Sony Corp. of America v. Universal City Studios, Inc., 464 U.S. 417 (1984).
Note, however, that under the Regulation of Investigatory Powers Act 2000 providers may be placed under a duty to intercept, retain, or store information.
The author acknowledges that more research is clearly needed in this area to assess the operational costs and its true impact on the business’ bottom line and viability.
Bundesgerichtshof (Rolex SA v. eBay GmbH) (I ZR 304/01) Unreported, March 11, 2004.
Unreported.
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Riefa, C. “To Be or Not to Be an Auctioneer?” Some Thoughts on the Legal Nature of Online “eBay” Auctions and the Protection of Consumers. J Consum Policy 31, 167–194 (2008). https://doi.org/10.1007/s10603-007-9063-0
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DOI: https://doi.org/10.1007/s10603-007-9063-0