scubu You are apparently not aware that a marked counterfeit which complies with the Hobby Protection Act is allowed to be sold on
ebay. The entire REPLICA section is full of them and there are no complaints. These coins can be tooled to remove the word COPY and I have seen many examples of that but
ebay DOES allow the sale of marked counterfeits.
I absolutely agree with you in principle that the hobby needs protection from fraud but it is the abject failure of
ebay's rules to do so and the way
ebay enforces their rules that bothers me most.
I have reported fake Chinese coins until I have become tired of doing it, because
ebay will take NO action on those. It is a legal activity according to
ebay. That is because it is legal to make and sell counterfeits in China.
But
ebay will every once in a while terminate an auction for a properly attributed counterfeit, if it is posted by a US citizen. Sellers in Canada and the UK face no sanctions. They only punish the honest sellers who know a coin is a counterfeit and SAY SO. In that case no fraud is involved PROVIDED the counterfeit is LEGAL under the Hobby Protection Act. Many counterfeits are completely legal to own and possess - FRAUD is the key issue in the law.
The real danger to the hobby are the
numismatic forgeries that are worthless and are ILLEGAL. The 4R counterfeit pictured first rarely sells for under $120 and it is absolutely the MOST COMMON 4R counterfeit legally available today. It is the only period 4R counterfeit known to exist in numbers as high as 25 copies. A typical period 8R Birmingham forgery sells for 2 to 3 times what an original in comparable condition sells for. I have seen common date Mo Portrait 8Rs in VG sell for over $400 and the 2Rs sell for even more. So even if a novice accidentally won a contemporary forgery (which I doubt he ever would) he would actually be ahead of the game. So Legal period counterfeits are NOT a problem except in
ebay's mind.
They do not want to police the market. It would be TOO EXPENSIVE FOR THEM TO DO SO. That is a quote from an
ebay lawyer to me personally.
So
ebay's concern is their BOTTOM line not the hobby.
It is the junk coin - the 10 cent copper-nickel copies that are dangerous. NOTHING EFFECTIVE HAS BEEN DONE TO STOP THEM FROM FLOWING INTO THE US BY THE THOUSANDS.
ebay simply hides behind their policy and rules and profits off the sale of this junk every day of the week.
So while I agree that junk "counterfeits" should not be allowed,
ebay policy is forcing most sellers of collectible counterfeits to list them blindly. At the same time,
ebay rules have NO EFFECT at all on the fraudulent trade which continues unabated.
The saving grace for fellows like myself, is that we can spot valuable counterfeits and outbid the novices who are bidding as if they were real. It works but it drives an otherwise legal enterprise underground.
In the past year (51 weeks and 3 days actually, since I have been tracking all Mexican auctions on
ebay), there have been 177 Counterfeit 8R coins posted on
ebay. Of that number of 177, 125 were NOT IDENTIFIED as forgeries mostly to avoid
ebay rules. Most sellers know, most buyers know - it has become an OPEN SECRET like gays in the military. They should call it "Don't tell, don't get terminated". Not one of the don't tell auctions was terminated by
ebay.
In the same period of time, 52 auctions were posted involving properly identified counterfeits from the same period. Of that group of 52, 7 were terminated by
ebay and 2 were Terminated after the auction was completed.
It is perhaps much ado about nothing to some people, but in the same period of time, I tracked 2,396 auctions involving Fraudulent Numismatic Forgeries from China NONE OF WHICH WERE TERMINATED by
ebay. That number includes re-sales in the US by people who were defrauded. The average sale price hovers in the $100 to $200 range. So about a quarter million dollars in sales was involved. I have gotten over 250 of the US re-sales stopped or properly attributed! (I consider either to be a victory.) But every one of those changes was a result of seller action - NOT
ebay. The Chinese sellers, by the way, either ignore me or say "Thanks for the information" and do NOTHING.
I have not even addressed here the Chinese Replica auctions which portray coins marked "COPY" or "REPLICA" in photos on
ebay but which arrive WITHOUT the stamp. Several sellers photo-shop the word onto their pictures. So many of the forgeries sold in the Replica section arrive as ILLEGAL items. I tested this by purchasing a few from various Chinese merchants that I suspected of photo-shopping their pictures. Of the 20 test coins I bought this year, NOT ONE came through with the word "COPY" or "REPLICA" on it.
So
ebay's overall record for stopping worthless Chinese forgeries is dismal. I am doing far more to protect the hobby than they are - and I do not profit one cent for my actions. I am just frustrated by the bobbing and weaving
ebay does to avoid any responsibility to keep the market place free of fraud, while at the same time they are labelling my collecting activities as ILLEGAL.
Banning all sales from China might be a good first step - followed by a collector's committee who could review suspect coins and REMOVE all of the junk replicas. I would volunteer immediately for such a committee. Just give me a way to contact the bidders, like I used to have and I would start again on my own.
IF it is BROKEN - we need to FIX it.