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eBay to Adopt Stricter Rules For Some Travel Auctions
By: Jane Costello
May 22, 2002 - EBay Inc. is taking steps to ensure customers don't
have a bad vacation. Starting in June, the "Airline, Cruises, Lodging
and Vacation Package" section of the auction site will require anyone
who wants to put items up for bid to register as a "verified seller."
Interested parties will fill out an online questionnaire and pay a $10
registration fee, plus an additional $7.50 a month upon acceptance.
Applications will be reviewed and certified by SquareTrade, an online
mediation and certification company.
According to the new rules, those intending to put lodgings up
for bid must be either a "duly authorized employee of a business in the
lodging industry" or the individual owner of the property up for bid.
Persons who wish to sell vacation packages and cruises must be employed
by the travel industry; those planning to sell packages including
airline tickets must be legitimate employees of a travel-related
company and have the authorization to issue tickets.
EBay spokesman Kevin Pursglove said the company decided to set
up the "SquareTrade Seal Program" in response to complaints from
buyers. "As is often the case, a problem in the offline world has
gravitated online," he said, referring to numerous travel come-ons
offered via direct mail and telemarketing. "With our travel category
growing, the one area of concern we kept hearing from buyers was that
oftentimes the vacation package did not materialize the way it was
described."
Customers also complained about hidden costs; many package
deals came with fine print that required buyers to pay for additional
taxes, fees, gratuities and extra-person charges on top of the winning
bid price.
Square Trade is a privately held San Francisco company that specializes
in online mediation, such as between eBay buyers and sellers. EBay's
customer-service reps routinely refer site users caught in a dispute to
SquareTrade; the fee for mediation is typically $15. The Seal program
stipulates that members meet the criteria outlined by eBay and pledge
to abide by the rules, such as how quickly they must respond to
complaints.
When word of eBay's new policy hit cyberspace, rumors began to
circulate that it would apply to individuals who wanted to sell unused
airline tickets, upgrade certificates, free-drink coupon books and
other merchandise that can easily be found up for bid on any given day.
EBay says that isn't so -- but some customers were confused by
the wording of the policy. One section states that the "Airline,
Cruises, Lodging and Vacation Package categories on eBay will require
mandatory verification of all sellers," which led some to assume only
employees of travel companies would be eligible to sell a ticket.
"The way that I read it, they are going to stop even
airline-ticket sales in June unless the seller is registered as an
employee of a travel agency or other related travel business," said
Harvey Mechanic, an eBay member and attorney from Los Angeles who
joined in the online discussions about eBay's new policy.
Mr. Mechanic said he thinks it's a "good Idea" to tighten up
the eligibility for sellers who trade in vacation packages, but added
that he doesn't want eBay to interfere in the free market of buyers and
sellers who deal in airline perks and certificates.
"In the future, I hope they don't extend the ban to individuals selling tickets or airline miles," he said.
It isn't surprising that individuals such as Mr. Mechanic would
be worried. Airlines have long frowned on passengers who take to eBay
in an attempt to sell hard-earned perks such as first-class upgrade
certificates and coupons good for miles. Frequent-flier program rules
dictate that the miles themselves can't be sold or bartered, and
members who put them up for bid on eBay ferociously guard their real
identities for fear of being kicked out of their programs.
Mr. Pursglove said that while several airlines have tried to
persuade eBay to prohibit the sale of mileage certificates in the past,
the new policy doesn't apply to individuals looking to unload an
unwanted mile, drink or ticket.
"Those people are still free to put their items up for bid," he said.
About SquareTrade
SquareTrade is the leading
innovator in online trust development, reputation enhancement and
dispute resolution for e-commerce transactions. SquareTrade's critical
e-commerce infrastructure gives buyers and sellers--both consumers
and businesses--the confidence they need to conduct transactions
online. SquareTrade addresses the all-important issue of building
trust in e-business relationships, which is one of the essential
enabling factors required before there will be substantial transaction
volume in online marketplaces. The digitally watermarked SquareTrade
Seal establishes an online seller's customer service track record,
helps build buyer confidence and serves as the first line of defense
against fraud. The Seal is backed by SquareTrade's patent-pending
Internet-based dispute resolution service and international network
of 250 mediators and arbitrators. Founded in 1999 and today with
over 60 full-time employees, SquareTrade is based in San Francisco,
Calif. For more information, employment opportunities or to contact
SquareTrade representatives, visit the Web site at www.squaretrade.com. |
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