BUYER PROTECTION ON EBAY
Buyers are protected on ebay via Paypal only to a maximum amount. This is also aided via Credit Card charge backs.
Buyers are not protected on ebay if any other source of payment is used. ebay will simply refer you to fraud organizations on the Internet etc. etc.
If a Seller cheats a Buyer, the Seller can remain on ebay. Ebay has a warning system. When the Seller has been reported several times ebay will close his/her account. The Seller can have tons of negative feedback but unless reported on each of those transactions will remain on ebay.
WHY
ebay is not in law enforcement and cannot get involved in a civil suit because they claim they are only a venue. So it's a battle between Buyer and Seller. It seems that ebays new feedback system is created to reduce fraudulent Sellers.
FROM EBAY'S USER AGREEMENT
Liability
You will not hold eBay responsible for other users' actions or inactions, including things they post. You acknowledge that we are not a traditional auctioneer. Instead, the Sites are a venue to allow anyone to offer, sell, and buy just about anything, at anytime, from anywhere, in a variety of pricing formats and venues, such as stores, fixed price formats and auction-style formats. We are not involved in the actual transaction between buyers and sellers. We have no control over and do not guarantee the quality, safety or legality of items advertised, the truth or accuracy of listings, the ability of sellers to sell items, the ability of buyers to pay for items, or that a buyer or seller will actually complete a transaction.We do not transfer legal ownership of items from the seller to the buyer, and nothing in this agreement shall modify the governing provisions of California Commercial Code § 2401(2) and Uniform Commercial Code § 2-401(2), under which legal ownership of an item is transferred upon physical delivery of the item to the buyer by the seller. Unless the buyer and the seller agree otherwise, the buyer will become the item's lawful owner upon physical receipt of the item from the seller, in accordance with California Commercial Code § 2401(2) and Uniform Commercial Code § 2-401(2). Further, we cannot guarantee continuous or secure access to our services, and operation of the Sites may be interfered with by numerous factors outside of our control. Accordingly, to the extent legally permitted, we exclude all implied warranties, terms and conditions. We are not liable for any loss of money, goodwill, or reputation, or any special, indirect, or consequential damages arising out of your use of our Sites. Some jurisdictions do not allow the disclaimer of warranties or exclusion of damages, so such disclaimers and exclusions may not apply to you.
Regardless of the previous paragraph, if we are found to be liable, our liability to you or to any third party is limited to the greater of (a) the total fees you paid to us in the 12 months prior to the action giving rise to the liability, and (b) $100.
Guide created: 05/01/08 (updated 01/11/09)


Thank you for voting. If your vote meets our