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Are Paypal acting illegally?

Hi

This is my first post although I've been a lurker for a while. I hope I've put this in the right place.

I recently purchased an item from a business seller on Ebay, the item was faulty when it was delivered, I contacted the seller the same day and advised that the item was faulty, the seller responded asking me to return the item for a refund. However, the seller wants me to send the item back by recorded delivery, (it was only sent by standard Royal Mail to me!). I refused to bear the postage costs as the item was faulty and thefore raised a Paypal dispute.

Paypal immediately found in my favour and advised that I would receive a full refund as soon as I returned the item to the seller by a trackable postal method :confused:

I explained to Paypal that the seller was responsible for return postage costs under the Sale of Goods Act 1979 as the item was unfit for purpose. Paypal insist that there terms and conditions (which I signed up to) put the responsibility for return postage costs with the purchaser not the seller. I have spoken to Trading Standards who confirm that the seller is liable for the postage costs but Paypal think their terms and conditions over ride UK law.

Has anyone else had this problem with Paypal when trying to get a refund for faulty goods?

TH
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Comments

  • In paypal world the buyer pays for returns but any decent seller would pay the shipping costs of a faulty item.
    Terms & Conditions Apply
  • frivolous_fay
    frivolous_fay Posts: 13,302 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Mortgage-free Glee!
    I don't know about the legalities of it all - but the trackable delivery method suggested to you is so that you have proof the item was returned.

    You could choose to send it back untracked, but obviously you'd be relying on the honesty of your seller, and the efficiency of the RM!
    My TV is broken! :cry:
    Edit: refunded £515 for TV 1.5 years out of warranty - thank you Sale of Goods Act! :j
  • mrmr37
    mrmr37 Posts: 22 Forumite
    Welcome to the world of Paypal. Have you not heard that Paypal are above the law in this country!!!:rotfl:

    They do what they want, when they want and dont ever feel the need to explain themselves!

    (I'm on a bit of Paypal bashing spree today!!)
  • cyberbob
    cyberbob Posts: 9,480 Forumite
    1,000 Posts Combo Breaker
    edited 3 August 2009 at 2:51PM
    As ABC says regarding the paypal world. But its not paypal breaking the law technically its the seller as they are responsible for the goods

    Cyril will be along Soon :D
  • smashed
    smashed Posts: 1,043 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    DSR's etc do not apply to auctions, but do apply to BIN's.
    Paypal will act illegally with a lot of things, but you would have to go to small claims court to fight them, or the seller, if paypal wont listen to you.
    Be nice
  • Thanks all

    I know I'm right on this one regarding return postage costs. Paypals terms and conditions are clearly unfair and I suspect illegal. When I spoke to them this morning they advised me that there is no ombudsman/financial organisation in this country who they are answerable to. If I want to complain I have to go to the ombudsman in Luxeumbourg, but amazingly they couldn't provide me with the addesss. So I contacted the Financial Ombudsman Service to find out what to do and hey presto a complaint has been raised and Paypal now have to respond within 8 weeks.:rotfl:

    I'm not holding my breath on this one but if they are forced to change their terms and conditions to ensure that purchasers can get postage costs on faulty goods refunded then I think a lot of people will be very happy and sellers will have to act within the law.

    I am so angry I'm thinking of starting a petition, anyone know how to do this?
  • pinkshoes
    pinkshoes Posts: 20,608 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Why don't you send the item back to the seller by trackable method, and see if they then refund you? Any good seller will refund the item cost as well as all postage once it's returned. If they don't, then leave them a factful negative feedback.

    Until the seller actually refuses to refund you the return postage, and only refunds the initial cost and postage, then he/she hasn't actually done anything wrong yet, so I think you're jumping the gun a little.
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    Are Paypal acting illegally?

    Hi Tubby Hubby & welcome to MSE

    No, paypal are not acting illegally.:hello:

    You agreed to paypal's terms when you signed up for their service. If you want paypal to help you in your predicament, then you need to abide by those terms.

    Otherwise sort out your issues with your trading partner outside of ebay/paypal. ;)
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • Thanks all

    I know I'm right on this one regarding return postage costs. Paypals terms and conditions are clearly unfair and I suspect illegal. When I spoke to them this morning they advised me that there is no ombudsman/financial organisation in this country who they are answerable to. If I want to complain I have to go to the ombudsman in Luxeumbourg, but amazingly they couldn't provide me with the addesss. So I contacted the Financial Ombudsman Service to find out what to do and hey presto a complaint has been raised and Paypal now have to respond within 8 weeks.:rotfl:

    I'm not holding my breath on this one but if they are forced to change their terms and conditions to ensure that purchasers can get postage costs on faulty goods refunded then I think a lot of people will be very happy and sellers will have to act within the law.

    I am so angry I'm thinking of starting a petition, anyone know how to do this?

    Paypal have registered offices in the UK so they do answer to the UK ombudsman.

    This link may be of some help.

    http://www.ukauctionhelp.co.uk/ppchargeback.php
    Terms & Conditions Apply
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    ...I am so angry I'm thinking of starting a petition, anyone know how to do this?
    Stand on the corner of the street with pen and paper and ask people passing by to sign one?
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
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