eBay’s buyer protection loophole leaves a customer empty-handed

Q: I bought a $152 mini PC on eBay for a project. The seller provided tracking showing delivery to my ZIP code, and I was home, but no package arrived. My security cameras proved it, and USPS confirmed the package wasn’t delivered to my address or even addressed to me. In fact, USPS told me the tracking number originated from an Etsy order in Hawaii, suggesting it was a scam.

I made a claim under eBay’s Money Back Guarantee, but eBay denied my claim because their system only checks if tracking shows delivery within the ZIP code — not whether it went to the correct person. The seller exploited this loophole.

eBay auto-closed my case in the seller’s favor, and it removed my negative feedback. I provided USPS’s direct phone line for verification, but eBay refused to call. I spent days calling, chatting and emailing executives, but eBay continued to ignore me. Even after 23 years as a buyer and seller, eBay left me powerless. Can you help?

— Joe Burley, Carlsbad, Calif.

A: eBay’s Money Back Guarantee policy promises item delivery to the buyer — not just their ZIP code. The guarantee only says the delivery must have “the recipient’s address, showing the zip code (or international equivalent) that matches the one on the order details page.” It says nothing about only checking or verifying the ZIP code in a dispute.

When you provided USPS’s evidence, eBay owed you a human intervention. Federal Trade Commission rules against deceptive business practices require companies to honor advertised guarantees. By almost fully automating its investigation while ignoring USPS’s willingness to cooperate, eBay failed its own policy and basic consumer duty.

I like the way you handled this problem. You had security footage and a USPS validation. You attempted to escalate this within eBay’s system. I see that you split your payment between a gift card ($100) and credit card ($52), which slightly complicated things. When you pay with a gift card, you can’t file a credit card chargeback. For online purchases, I suggest that you use a credit card. It gives you more dispute leverage.

Once the normal channels have run their course, you still have options. You can escalate your claim, as you did, to one of the eBay executives. I list their names, numbers and email addresses on my consumer advocacy site, Elliott.org. I reached out to eBay on your behalf. Within days, eBay refunded your $152 without explanation. Unfortunately, the seller remains active, with your negative feedback scrubbed clean.

Christopher Elliott is the founder of Elliott Advocacy, a nonprofit organization that helps consumers solve their problems. Email him at chris@elliott.org or get help by contacting him at the nonprofit’s site.