ebaY Policy on Matrix, Pyramid, and MLM Auctions

[MatrixWatch]

Click here to access the Q&A online forum associated with this statement from ebaY, Inc. (http://forums.ebay.com/db2/thread.jsp?forum=107&thread=410036163&modifed=20040310125242)


Notice to the Community: MLM / Pyramid / Matrix schemes
avery@ebay.com
02/23/04 6:24 PM

Dear Community,

I have become concerned recently about a particular type of MLM (multi-level marketing) violation on the site. The particular type that I have noticed relates to making obscene amounts of money with the use of a PayPal (or similar) account.

You will need to make an independent decision about the safety of any particular type of MLM opportunity off of the eBay site. I would strongly encourage a great deal of caution. Every MLM is not necessarily a pyramid scheme. However, many will pretend to be legitimate and will even make bold claims to not be exactly what they are. It is not always possible to recognize a pyramid scheme in advance because of the clever ways in which they are constructed and the enticing outer face that is created.

There are many government and private sites that advise on these topics. I will be adding some information and links regarding this to my About Me page in the near future.

Whether a pyramid scheme or not, no MLM type of promotion is permitted on the eBay site. Even if an entire listing is not intended to promote this type of business, the referencing of a MLM in a listing is in itself a listing policy violation. In most cases, such listings tend to violate multiple listing policies.

eBay listings should not to be used to promote these easy money making opportunities. eBay listings should not be used as a webfront intended to promote/further one's place within the MLM.

I would encourage both buyers and sellers to be careful to observe the various eBay policies and to help protect the eBay community. Some of the MLMs have "caught like wildfire". While I cannot comment on whether any particular opportunity is legitimate or not, again, I would encourage caution and research.

Sincerely,

Avery
eBay Trust & Safety

[MatrixWatch]

It would be beneficial to the community at ebay.com if a link to MatrixWatch.org were included in that forum. Perhaps someone who is already a member may be able to help out with this.

What many members of the ebay community have not realized yet is the MatrixWatch.org's "eBay Watch Dogs" are at the forefront of eliminating these schemes from the ebay-auction block. Since May, 2003 our grass-roots squad of volunteers have helped ebay shut down between 30-35,000 of these scam auctions, which also led to over 500 scam-seller accounts being NARUed (NARU= Not a Registered User, aka "kicked off ebay")

The team has become so advanced that they are now developing and modifying new software technology to prevent this fraudulent type of auction on ebay.

I have spoken with ebay numerous times about our campaign here at MatrixWatch.org, and they are appreciative, although there are, of course, other negative details that cannot be shared at this time. That is, unless you are from a large media company and you are willing to pony up for some details that would make a great story.:D

[concerned]

I think it would be more beneficial for ebay to email all their members about stuff like this. Not too many people read their forum. On top of that, they should setup an auto email to all new accounts that are made explaining the risks and all the possible scams that ebay knows about. That way newbies will be better informed. That is the least ebay should do, given they don't seem to want to do anything else to police their own business. They should have some pride in trying to act somewhat ethical. Watchdog, do you think you can suggest this to ebay?

[MatrixWatch]

I have actually made some pretty serious recommendations to ebay. In the near future I will consider releasing some of the details of my interaction with ebay, Inc. as it pertains to matrix-scam prevention on ebay.com

Stay tuned.

[MatrixWatch]

Originally posted by watchdog

I have spoken with ebay numerous times about our campaign here at MatrixWatch.org, and they are appreciative, although there are, of course, other negative details that cannot be shared at this time. That is, unless you are from a large media company and you are willing to pony up for some details that would make a great story.:D

Looks like the above quote has stirred up some criticism at matrix-sites.net. Notice that there is a big smiley at the end. I put that there because the statement was a JOKE! The details I refer to will be released soon in the corresponding link within the main-menu box.

What large media corporation would be willing to pay for details of correspondance between a small anti-scam site and eBay, Inc.? Not many. That is why the statement was a joke. It was not said to be serious.

Seriously, if we were out to make money then there would be all kinds of advertising on this site. We do have a donations account, but we only made enough to pull in some cash for a few months of hosting.

Now, we do have some info about UK matrix scams, but the English Parliament may need to pony up a few million dollars to get those facts from us. :D

[concerned]

Originally posted by watchdog
Now, we do have some info about UK matrix scams, but the English Parliament may need to pony up a few million dollars to get those facts from us. :D

For those matrix-sites people who claim to not care at all about what we say, yet continue to post about matrixwatch, please note that this is also a joke.

Watchdog, I think that for those that are intellectually challenged over at matrix-sites, we should include this in our posts so that we can help them interpret the language a little better.

{The following is a joke}

[jokach]

I agree with concerned that Ebay should do a better job of informing its users of matrix type scams/listings. Most of the people who are buying these 'informational' auctions are newbies to ebay and don't even know that ebay has forums, let alone know enough to check them out first for notices. A good example is an auction that was on mercinarys list today and reported, a first timer (no feedback) bought an informational auction using buy-it-now for $100 (my stomach turned). Hopefully they didn't make payment on it, but Ebay still has to have some responsibility in the credibility of its listing, just like any other business .. its bad enough that matrix sites rip people off, but being ripped off just to get the information for a matrix site is even worse ... Just posting a memo in the forums in my opinion is just not enough ..