29 Jan 2006
Seeing Fakes, Angry Traders Confront EBay

It seems to me that these complainers have a point. The closest physical analogy to eBay is what we call in Indiana an "antiques mall" or "flea market". This is a larger building, leased by a service company and subdivided into booth space, which is then rented to various small vendors. If a vendor is selling knockoffs, and buyers complain to the market management, the vendor usually finds himself in the parking lot in short order. It's considered to be accessory to fraud if the market manager or auctioneer knowingly allows the sale of items he suspects may be fraudulent - and complaints from customers certainly have the effect of passing knowledge!

Of course, in eBay's case, it's a lot harder for market managers to inspect the goods themselves - but does the mere difficulty of this (which is built into their business model) exempt them from laws and regulations that apply to similar institutions in the "brick and mortar" world?

The heart of eBay's business model is being challenged by users who have discovered knockoff products being sold on the site.

(link) [New York Times]

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