For Grant Horne, a film student at Texas Christian University, it could have been a lot worse.
Horne was one of more than 100 people who had been named winning bidders for a cache of refurbished Nintendo 64 game consoles sold on eBay by a Colorado man.
Horne sent his money order for US$76 on 3 September, and was told to expect the console within four to six weeks. Ten days later, Horne emailed the seller, asking if the payment had been received. A long period of silence followed. Then Horne learned that the seller was no longer registered with the eBay service.
Eventually, Horne located the seller, who said he was not prepared to meet the enormous response.
"I think he's an honest guy, but I'm calling him every few days to stay in touch," Horne said. He's still working on getting his consoles for himself and the 110 other bidders.
The case raises red flags about how online auction houses like eBay could be held liable for deadbeat dealers and bidders. EBay and its rivals contend that their services are akin to classified advertising in newspapers, so they can't be held liable for false advertising. But some regulators and lawyers aren't satisfied.
"We are very concerned," said Elizabeth Hone, staff attorney at the Federal Trade Commission, which is examining the issue. "The most important thing is that consumers understand the risks they are accepting" when they bid online.
The auctioneers could avoid legal tangles if they required users to accept an interactive contract ("Click here to accept terms of service"), said Dave Kramer, attorney at technology legal firm Wilson, Sonsini, Goodrich & Rosati. Currently, eBay requires a click through their user agreement in its registration process.
The auctioneers say feedback forums about the reputation of sellers and offering optional escrow and insurance features for an additional fee, are good enough to keep people honest.
"If you're interested in doing business with someone, you should read the comments that people have left about that person and even contact the seller directly," said eBay spokeswoman Kristin Seuell. "Make sure you communicate and that you understand exactly what you are bidding on before you place your bid."
Editors' Note: This story has been corrected. In the original, Wired News reported that eBay did not require users to specifically state that they accept eBay's terms of service. In fact, eBay does demand that users accept its terms of service in the registration process. Wired News regrets the error.
