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Ebay Counterfeit "Bounty" System: Your Thoughts?

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SteveCaruso's Avatar
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1796 Posts
 Posted 02/15/2015  6:54 pm Show Profile   Bookmark this topic Add SteveCaruso to your friends list Get a Link to this Message Number of Subscribers
Poll Question
So with counterfeits practically deregulated on ebay, and hearing complaints almost daily about "how can this seller get away with this?" I would like to put the following idea "out there" in a request for comment. Some of you might find this familiar as I've mused about it before:

Where the word "bounty" generally refers to some sort of gift or reward; however, it can also mean "generosity." You'll see where that title's going in a bit.

Imagine a webpage where users can submit suspected counterfeits being sold by ebay sellers whose accounts seem dedicated to fakery or have been unambiguously informed and know that their items is a counterfeit and yet insist upon selling it despite warnings.

A third party, in this case the staff of The Black Cabinet, reviews these submissions and takes all of the entries which are examples that are unambiguously counterfeit along with contact transcripts and other evidence, reports them to ebay once more, and then lists them under a "Request For Bounty" page.

Now, under ebay's Customer Protection Policy, if someone purchases a counterfeit and they bring to ebay's attention that it is indeed a fake, and that they would be breaking the law to send it back, ebay gives them 5 days to furnish (1) a certified letter by a third party expert concurring with this assessment, and (2) requires that the customer has the item destroyed and discarded (so that it cannot be re-sold) and sign a statement to that effect.

Once both of those documents (the expert testimony and destruction statement) are secured, ebay will then refund the buyer's money.

With this in mind, if the additional reports made by The Black Cabinet and other users perusing the list to ebay do nothing about a counterfeit listed under a "Request For Bounty," a user may then -- if they are feeling "bountiful" enough to use their own funds -- opt to bid on/purchase any of the counterfeits listed. If they do so/win and submit the counterfeit to The Black Cabinet for physical confirmation (to see that it is indeed fake), public documentation to ensure that others have something to look out for, and the ultimate destruction of the counterfeit (http://www.theblackcabinet.org/justice/), The Black Cabinet will provide them with the certified letter they'll need to get their money back in full.

Where there is no guarantee that they will accept the letter, all letters that I have written to ebay in the capacity of my work on The Black Cabinet, to date, have been accepted, the buyer was refunded promptly, and another counterfeit fell to Justice.

In this way, several things are taken care of:

1) The entire process is initiated outside of The Black Cabinet, so the staff may act as a true 3rd party.

2) The process is public, so it cannot be abused (no claiming real coins are fake and re-selling them -- there are enough horror stories about that). There will be a paper trail, documentation, and photographic evidence of how a seller "knows or should have known" as per HPA/CCPA and chose to sell anyways. This would be a boon to law enforcement to tackle repeat offenders, offering an open-and-shut case, and hit overseas counterfeiters that the Secret Service can't easily touch.

3) It will get counterfeits out of the hands of crooks and remove them from circulation, rather than allow them to be sent back and refunded so they can turn around and sell them to another unsuspecting buyer (which is what ebay will ask if a buyer does not press the issue that they would be in violation of Federal Law to do so).

I have already put together some alpha software that can help with streamlining such a procedure that integrates it with the existing Black Cabinet website's software, and it's almost ready for testing. Our discussion here will determine whether or not I flip the switch on it.

So, now I must ask for your thoughts and comments. What do you think, CCF? :-)

Poll Choices
 We need this. I would take part.
 I think it's a good idea, but I'm not sure.
 I am indifferent.
 I'm not sure this is a good idea.
 I am opposed to this.
 Other concerns (explain)

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SteveCaruso's Avatar
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 Posted 02/15/2015  8:43 pm  Show Profile   Bookmark this reply Add SteveCaruso to your friends list Get a Link to this Reply
Any discussion outside of poll answers? :-)
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mysilveryears's Avatar
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1888 Posts
 Posted 02/16/2015  11:42 am  Show Profile   Bookmark this reply Add mysilveryears to your friends list Get a Link to this Reply
I am ok with the concept, but do feel there should be some way *not* to destroy the piece, but rsther add it to a permanent, secure reference collection, including an online photo database containing all relevant information, for future educational purposes.
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ace_ftw's Avatar
Canada
1747 Posts
 Posted 02/16/2015  12:47 pm  Show Profile   Bookmark this reply Add ace_ftw to your friends list Get a Link to this Reply
2 issues with the concept, that need to be thought about;

1) what are ebays definitions of "an expert" is this someone in the field such as retailer, or does this need to be someone from a TPG, or can anyone claim to be an "Expert"?
2) If this is a legal procedure all items would need to be notarized, who would pay for this service?

I don't think the idea is bad, but there are some logistical issue which need to get fleshed out.
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Wade's Avatar
Canada
2781 Posts
 Posted 02/16/2015  5:29 pm  Show Profile   Bookmark this reply Add Wade to your friends list Get a Link to this Reply
thank you Steve for your tireless efforts.

BUT, if the proposed practice takes off and it starts costing ebay money their refund policy or rules about "experts" etc will change.

if ebay had any intention to stop counterfeit sales they would never have disbanded the expert committee that was looking after getting suspect listings pulled in the first place.

Edited by Wade
02/16/2015 5:30 pm
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SteveCaruso's Avatar
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1796 Posts
 Posted 02/16/2015  5:31 pm  Show Profile   Bookmark this reply Add SteveCaruso to your friends list Get a Link to this Reply

Quote:
I am ok with the concept, but do feel there should be some way *not* to destroy the piece, but rsther add it to a permanent, secure reference collection, including an online photo database containing all relevant information, for future educational purposes.


Destruction and discarding in this case is not negotiable as it's part of ebay policy. If you don't you're required to send the item back, which is in violation of the CCPA's updated rules to the HPA as it potentially aids a counterfeiter.

Otherwise -- with all of the documentation and databasing -- you've basically described what The Black Cabinet is. :-) Donating it to The Black Cabinet so the buyer no longer has it and stamping it permanently with COPY (to spec with FTC regulations) so it cannot be re-sold appears to satisfy both the letter and the spirit of ebay policy.


Quote:
1) what are ebays definitions of "an expert" is this someone in the field such as retailer, or does this need to be someone from a TPG, or can anyone claim to be an "Expert"?


The worrisome thing is that -- in order to, I assume, dissociate themselves as much as possible -- they do not define an "expert." The onus on finding an appropriate expert appears to lay with the buyer alone and they state that they cannot re-imburse any costs associated with authentication.


Quote:
2) If this is a legal procedure all items would need to be notarized, who would pay for this service?


They originally asked for a notarized copy for one case where a buyer came to me for help, but they've accepted letters that clearly outlined why the item was a counterfeit, signed and sworn in Good Faith under the penalty of Perjury without notarization with my full legal name, address, and telephone number.

If this changes, getting it notarized would be no problem as I have access to my bank's notary public.
Edited by SteveCaruso
02/16/2015 5:37 pm
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SteveCaruso's Avatar
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1796 Posts
 Posted 02/16/2015  5:36 pm  Show Profile   Bookmark this reply Add SteveCaruso to your friends list Get a Link to this Reply

Quote:
if the proposed practice takes off and it starts costing ebay money their refund policy or rules about "experts" etc will change.


Aye, and if their policy changes then something else may have to be done that may end up involving lawyers and class action.


Quote:
if ebay had any intention to stop counterfeit sales they would never have disbanded the expert committee that was looking after getting suspect listings pulled in the first place.


Precisely!
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SteveCaruso's Avatar
United States
1796 Posts
 Posted 03/21/2015  5:46 pm  Show Profile   Bookmark this reply Add SteveCaruso to your friends list Get a Link to this Reply
The Alpha of the Request for Bounty software is complete and ready.

Does anyone want to help with testing?
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SsuperDdave's Avatar
United States
23522 Posts
 Posted 03/21/2015  6:53 pm  Show Profile   Bookmark this reply Add SsuperDdave to your friends list Get a Link to this Reply
My thoughts?

Steve, I like you personally and love what you're doing, but you're obfuscating the real problem with this. ebay is currently an enterprise engaged in conduct made criminal under 15 USC 2101. They're breaking the law every time we tell them about a counterfeit and they do nothing. Compliance with the law would make your efforts unnecessary.

Para 2102 gives any of you the legal right to sue ebay for damages for any coin you bought which they knew was counterfeit. For that matter, given the relevant verbiage is "any interested person," chances are any one of us has status.

This much effort expended upon getting ebay to change their ways, given there's the force of Federal Law behind it, would be a greater service. Want to help? File a complaint with the FTC. Let's not bandage the problem. Let's fix it.
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SteveCaruso's Avatar
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1796 Posts
 Posted 03/21/2015  10:11 pm  Show Profile   Bookmark this reply Add SteveCaruso to your friends list Get a Link to this Reply
Trust me, if I had the kind of money necessary to file such a suit, I would be lawyering up. However, this plan does some things that such litigation could not by actively using ebay's own mechanisms.

1) It's going to get counterfeits *out* of the hands of counterfeiters, not just shut down their auctions so they can sell them again somewhere else. Even if -- say -- ebay were shut down entirely, they would still find ways to sell their product, and it's genuinely harder (... granted not impossible :-) ) to sell something you no longer have.

2) It's going to clamp down on *all* associated revenue streams. This will cause "defects" in counterfeiters' accounts which will make selling tougher, or get them quickly NARUed. ebay will not get a cut of the the gains, either.

3) It's going to build a serious paper trail for ebay's allowance of counterfeits, including logs of reports with images, screen captures of reports, verification of those fakes, and a reference collection of precisely what they're allowing sales of. An action under the HPA/CCPA through the FTC would have a much better chance of true precent-building success (as I am assuming that ebay would aggressively try to settle out of court rather than face such a paper trail).

Edited by SteveCaruso
03/21/2015 10:12 pm
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Australia
3831 Posts
 Posted 03/22/2015  07:44 am  Show Profile   Bookmark this reply Add gxseries to your friends list Get a Link to this Reply
I have two questions.

When you are dealing with shipping especially with buyers from overseas - how cost effective would this program be?

What are the odds of an expert declaring a genuine coin as counterfeit and have it accidentally destroyed?
My partial coin collection http://www.omnicoin.com/collection/gxseries
My numismatics articles and collection: http://www.gxseries.com/numis/numis_index.htm
Regularly updated at least once a month.
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SteveCaruso's Avatar
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1796 Posts
 Posted 03/22/2015  09:44 am  Show Profile   Bookmark this reply Add SteveCaruso to your friends list Get a Link to this Reply
Under ebay's protection policy, the buyer is refunded in full and the counterfeiter is out cost of goods and shipping so there is no cost to a volunteer other than a few bucks shipping to The Black Cabinet for confirmation, cataloging, and disposal.

As such there is -- in all practicality -- zero chance for a genuine coin's destruction. The Request For Bounty system is specifically for unambiguous counterfeits only (the kind which are obvious from listings), if there is any doubt there is no Request made, and all pieces are inspected before anything happens to them anyways.
Edited by SteveCaruso
03/22/2015 09:45 am
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