Business entities masquerading as private sellers

[txt.ltd]

Can someone confirm, by quoting the relevant text, that making business sales (i.e. buying items strictly to resell them) on a private selling account actually violates the eBay user agreement?

The closest I can find is a "you shouldn't do this" line in the 'Business seller policy' :

"Business sellers can't represent themselves as private individuals"
then
"Listings that don't follow these rules may be removed from the site or from search results. Other actions we may take include lowering a seller's rating, charging additional fees, limiting buying and selling privileges, or suspending an account."

Yet we see plentiful business entities, even actual companies with company numbers (and sometimes even VAT numbers) in their profiles, operating on private selling accounts. I have reported many listings and profiles and I come back a few months later and nothing has changed on most of them (like 90%+)

So is it a clear violation or more like an arbitrarily imposed half-rule?

Also, is it against the agreement to have a 2nd account, a private one, alongside a business one, so a business can compete with private accounts paying 20% of the fees?

[4_bathrooms]

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@txt.ltd wrote:

Can someone confirm, by quoting the relevant text, that making business sales (i.e. buying items strictly to resell them) on a private selling account actually violates the eBay user agreement?

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I believe this is the pertinent part:

"If you are registering with eBay as a business entity or on behalf of a business entity, you represent that you have the authority to legally bind that entity. If you are trading as a business on eBay, you must comply with all applicable laws relating to online trading for the site you are selling on (please see Listing Conditions for more information on the legal requirements for selling in the UK)."

As a business cannot trade legally from a private selling account doing so would therefore be a breach of the User Agreement.

However, eBay still aren't going to care until a body like the Chartered Trading Standards Institute makes them care.

[jckl1957]

This is a bit more definitive - brief but clear and straightforward in when a business account is required:

Do I need a business account?

If you plan to sell casually, such as selling items you no longer want, a private account is the best option. 

If you want to sell large quantities, if you have items that you've made or bought to resell or if you already have a business outside of eBay, you’ll need to register a business account.

https://www.ebay.co.uk/sellercentre/selling/create-ebay-business-account

[txt.ltd]

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@4_bathrooms wrote:

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@txt.ltd wrote:

Can someone confirm, by quoting the relevant text, that making business sales (i.e. buying items strictly to resell them) on a private selling account actually violates the eBay user agreement?

---

I believe this is the pertinent part:

"If you are registering with eBay as a business entity or on behalf of a business entity, you represent that you have the authority to legally bind that entity. If you are trading as a business on eBay, you must comply with all applicable laws relating to online trading for the site you are selling on (please see Listing Conditions for more information on the legal requirements for selling in the UK)."

As a business cannot trade legally from a private selling account doing so would therefore be a breach of the User Agreement.

However, eBay still aren't going to care until a body like the Chartered Trading Standards Institute makes them care.

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I wonder by 'if you are trading as a business on eBay' do they mean:
- making business transactions
or

- registered for a business account on eBay

Your thoughts? It's just not clear enough IMO

[txt.ltd]

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@jckl1957 wrote:

This is a bit more definitive - brief but clear and straightforward in when a business account is required:

Do I need a business account?

If you plan to sell casually, such as selling items you no longer want, a private account is the best option. 

If you want to sell large quantities, if you have items that you've made or bought to resell or if you already have a business outside of eBay, you’ll need to register a business account.

https://www.ebay.co.uk/sellercentre/selling/create-ebay-business-account

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To be honest it isn't that clear when the results are taken into account (multitudes of business entities selling on private accounts for years.)

It doesn't specify 'you must not' or 'X will happen if you do this' -- it says "if you have items that you've made or bought to resell or if you already have a business outside of eBay, you’ll need to register a business account."  but evidently that isn't 'needed' as so many sellers registered under private accounts do exactly what they say a business account is required for.

[4_bathrooms]

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@txt.ltd wrote:

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I wonder by 'if you are trading as a business on eBay' do they mean:
- making business transactions
or

- registered for a business account on eBay

Your thoughts? It's just not clear enough IMO

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The way I read it is "if you are trading on eBay" as "trading" implies the activity of a business; the "as a business" part of that sentence is superfluous. So this is how I read it:

"If you are trading on eBay, you must comply with all applicable laws relating to online trading for the site you are selling on"

[secularsid]

For a Trader to pretend to be a private seller is actually a CRIMINAL offence.  It breaches the Consumer Protection from unfair Trading Regs 2008...  and thus is s criminal offence.  Report to Trading Standards (via citizens advice)  who are the enforcement authority...

Ohhh but without their name and address ( hidden as they are 'private' you can not....)  But TS will talk to eBay and eBay always cooperate...  Also report to HMRC as the trader is likely also missing tax...  HMRC from Jan 2024 are clamping down on these people.

Also if you find a fault in the goods ( not as described) and do an auto return via eBay and they send you a postage label… WITH THE SELLER'S NAME AND ADDRESS on it.

 Private sellers do not have to cover return unless goods as not as described… so be careful to use the right reason.

Don’t report to eBay though, as they do not care and allow this practice....They ONLY consider a seller to be Trade if they sell over 80k ,, this is historic as they alighned the figure with VAT threhold... when being a Trader and a vat payer have nothing to do with each other... many traders are under the threshold  ... but try telling eBay that. 

For definition of  a trade just gogle HMRC defintion of selling in course of buisness...  Its simple.

This may change now that selling for private persons is free... so this makes the traders pretending to be private, losing eBay money!!!! 

Hope ths is helpful to you.