This week eBay announced changes to the eBay User Agreement. The biggest change focuses on the recently announced eBay Resolutions policy, as well as the new eBay Purchase Protection policy.

Instead of requiring buyers to go to PayPal for purchase protection — an initiative that was announced last month in eBay’s spring update (see EBay —Not PayPal—To Handle Dispute Resolution), eBay will now run its own protection program.

In the new eBay User Agreement, the eBay Purchase Protection states that eBay expects buyers and sellers to share the responsibility of making sure purchases facilitated by eBay are “exciting, rewarding and hassle-free”.

While eBay still strongly focuses on encouraging buyers to work with sellers before opening a claim, when a buyer doesn't receive an item or the item doesn't match what was described — and the seller doesn't provide adequate resolution to the buyer — eBay will reimburse the buyer subject to the conditions of its new eBay Purchase Protection policy.  

It is extremely important for sellers conducting business on eBay to be aware of the changes and also to know that your eBay User Agreement requires you to accept the terms and condition as outlined in the new eBay Purchase Protection policy.

The new eBay User Agreement is effective immediately for new eBay members registering on or after May 04, 2009, and on June 8, 2009, for current members. Those who do not agree to or accept the new User Agreement are advised by eBay to close their account.

Here is the section, courtesy of eBay, from the agreement that outlines the buyer and seller obligations.

Buyer Obligations:

• Buyers agree to file claims in accordance with the conditions, exclusions and coverage limitations as further explained in the eBay Purchase Protection policy.
• Buyers who eBay believes are abusing the program or a seller, attempting to commit or committing fraud, or attempting to unjustly benefit from the program, eBay reserves the right to temporarily, indefinitely or permanently suspend the eBay Purchase Protection program immediately if we suspect abuse, excessive claims, tampering, or interference with the proper working of the program.
• eBay Purchase Protection doesn’t cover certain types and categories of goods or services, false, abusive or illegitimate claims, or transactions where you have been or may be compensated from another third party. Please read the eBay Purchase Protection policy for more details.

 Seller Obligations:

• Sellers agree to follow the program requirements as explained in the eBay Purchase Protection policy.
• All sellers with an open claim must work in good faith to resolve the claim, refund money and/or provide a replacement item, and accept a return of the item as explained by the eBay Purchase Protection Policy.
• If a seller doesn't resolve a claim, the seller agrees to pay eBay the amount paid by eBay to the buyer in accordance with the eBay Purchase Protection policy. eBay will invoice the seller for these amounts and seller agrees to pay eBay in accordance with the invoice terms.

Obligations with respect to allegedly non-authentic items:

• For covered claims that meet the conditions and are not excluded, buyers are required to destroy an item if they claim it is not authentic. Once a buyer confirms destruction of the item, eBay will reimburse the buyer.
• For covered claims that meet the conditions and are not excluded, sellers agree to not hold buyers or eBay responsible for the destruction of an item if it is not believed to be authentic.

You can read the full text of the updated eBay User Agreement here. Also, sellers should read the exact language of the eBay Purchase Protection Policy and this updated eBay Resolutions FAQ.

eBay Stores Upgrade

In other eBay news this week, the auction giant reminds sellers to check their eBay Stores and transition over to the new format.  Changes to Stores layout offer new storefront templates and enhanced search results, and sellers are reminded to upgrade to the new Stores and preview their Store before the upgrades are automatically rolled out site-wide.

EBay has posted a lengthy and in-depth FAQ for those sellers who have an eBay Store. It is expected that all eBay Stores will be upgraded to the new format this month.

Vangie Beal is a veteran online seller and frequent contributor to ECommerce-Guide.com. She is also managing editor of Webopedia.com. You can tweet with her online @AuroraGG.