Ebay automobile fraud

                        EBAY AUTOMOBILE FRAUD

     Automobile fraud is a serious problem on Ebay.  People purchase cars for 10, 15, or even $25,000 and find they are not as represented.   Some reasons for this fraud:
            1) In a standard used car purchase, the buyer inspects, tests, and drive the vehicle.  On Ebay buyers may rely upon the seller's representation of quality.

            2) Many transactions are done across state lines giving the seller a false sense of security.  The buyer can't do anything, he's 1,500 miles away.  In fact, many of the cases we file in New Jersey are for out-of-state purchasers.

            3) A seller can have false reports of quality.  For small transactions, that does not make sense.  However, a cagey used car dealer could sell 10 items for $20.00 online, provide exemplary service to secure a good rating so it can sell a damaged vehicle for $15,000, 

            4) While carfax is standard in regular transactions, many consumers still fail to use it online.

      What can you do to prevent automobile fraud?  Always inspect and test-drive a vehicle, and have it evaluated by a professional mechanic.  If that cannot be done, buy a car locally.   Do not forward payment until the inspection has occurred; all too often payment is forwarded the car is then inspected and found deficient but the inspection comes too late.   Ebay states that it vigorously prosecutes fraud, but a news report found differently:

"EBay officials say they are aggressively fighting fraud in the massive online marketplace, but an investigation by MSNBC.com shows that the company doesn’t routinely inform customers when they have been ripped off or regularly notify law enforcement about apparently illegal activity on its site — even when presented with solid evidence of wrongdoing....
Three of the cases alleged phantom bidding - identical to shill bidding, but perpetrated by an individual rather than co-conspirators. The fourth was more elaborate: an alleged philatelic fraud ring in which collectible postage stamps were being altered and resold at a substantial profit. EBay’s response in each instance was apparently inconsistent with its repeated statements that fraud will not be tolerated."   EBay’s tough talk on fraud doesn’t withstand scrutiny, www.msnbc.msn.com/id/3078736

Many laws apply.  Our office asserts that lemon law disclosure and performance standards apply.   The federal odometer law is a national standard.  If the seller is a merchant, the Uniform Commercial Code requires that the goods be reasonably fit unless it is an as-is sale.  Ebay is generally unhelpful.