A civil Racketeer Influenced and Corrupt Organizations (RICO) lawsuit against eBay and PayPal was filed in Federal Court (complaint copy) claiming eBay knowingly and deliberately facilitates, proliferates and profits from the ongoing sale of counterfeit and fake products on its website.
From TheCounterfeitReport.com: RICO Allegations in the landmark case identify ongoing practices by the $18 billion e-commerce giant in aiding and profiting from the $1.7 trillion global counterfeit product industry.
The sale of counterfeit products infringe on U.S. Trademarks, threaten the health and safety of consumers, and damage the economy.
The infringing products and activity tarnish manufacturer’s reputations, damage brands, destroy U.S. jobs and dupe unsuspecting consumers.
Research by The Counterfeit Report, a popular anti-counterfeiting advocate, provided details and insight into eBay’s ecosystem to advertise, list, manipulate, sell, finance, ship and encourage the sale counterfeit and fake products.
During a two-year investigation, over 1,000 counterfeit products were received by The Counterfeit Report® from eBay sellers, but complaints fell on deaf ears. The sellers and many of the products remained on eBay, and sales continued to unsuspecting eBay consumers.
The counterfeit product test purchases from eBay sellers disclosed counterfeit sales to hundreds-of-thousands of duped eBay buyers who often never know they received a fake product and are entitled to an eBay refund. These sales have been a lucrative revenue source for the e-commerce giant, as transaction fees are charged for each sale of fake goods.
Even more shocking is that The Counterfeit Report® actually received website and email notifications from eBay, as do consumers, encouraging the purchase of reported known counterfeit and fake products.
If consumers identify the counterfeits, eBay directs consumers to mail them back to the seller as a condition for a refund, a violation of both U.S. Postal Regulations and Federal Law. The returned counterfeits are easily recycled, re-listed and re-sold to unsuspecting consumers. Additionally, buyers lose their only evidence of receiving a counterfeit.
The e-commerce giants, including eBay, Amazon and Alibaba should expect civil, criminal and legislative consequences when they fail to police their own websites and protect the consumer community.
We have observed eBay Inc profiting from fraud since this website was founded in 2004. The majority of our coverage is automotive vehicle related, as the sites domain name suggests. Deadbeat bidders, high dollar automobile phishing scams, auction fraud, etc.
I wouldn’t have known about this filing (last thursday) since it didn’t appear in major media. It was not mentioned on @TodayShow that i watch every morning, nor the NBC evening news. Our politically correct media, “as Donald Trump would say will not touch this story with a 10 foot pole!” Googling “ebay rico lawsuit” didn’t bring up one major media outfit through three pages.
One article that was in Googles index was from eCommercebytes.com and we suggest reading that articles many comments. The article paints a picture of how eBay Inc looks the other way when profits are concerned. I bet corporate execs knew this lawsuit (and possible rico criminal charges) were coming.
It has been said that the PayPal spinoff left eBay Inc with only $1 Billion in cash, and $4 Billion in debt (source ecb comment.) Where did the rest go? Did PayPal inherit it during the spinoff, which is only on paper? $EBAY and $PYPL are joined at the hip and always will be.. Makes ya wanna go hmmmmm.. 🙄
Another eBay related subject: It’s a fact that Doc’s fraud awareness website has saved countless numbers of consumers from being ripped off by car scams and bad sellers in it’s eleven years of operation. The admin and publisher of this website, had his previous eBay business and personal reputation smeared all over the net by a group of eBay Influenced thugs. This so called “Team eBay” even targeted Doc through his church by calling his pastor and telling a bunch of lies. Documentation of this reputation management smear campaign is here.
Though the above eBay orchestrated smear campaign is not related to this article, it is offered to give another example of how eBay inc does business. Or as Carl Icahn said, eBay Inc has the worst corporate governance i have ever seen!
Oh well just another hot summer day down here in paradise. And as i always say, just my two cents worth as usual 😉