Not upheld: non-return of funds / payment processing error complaint against eBay Commerce UK Ltd

Decision detail

Summary

Mr W purchased an item on eBay's marketplace using his marketplace balance as part payment. Although the marketplace indicated the payment was unsuccessful, his balance reduced to zero and the funds disappeared. The marketplace later admitted a software glitch had occurred. Mr W complained to Commerce (the regulated entity) but could not obtain a resolution. The ombudsman declined to uphold the complaint, finding that Commerce was not involved in the marketplace purchase or payment, as the marketplace is unregulated and the balance is not held in a regulated capacity. The ombudsman could not require a regulated business to resolve issues caused by an unregulated part of the same group.

The Ombudsman's reasoning

The ombudsman determined that Commerce, as the regulated entity, was not involved in the retail purchase on the marketplace or the payment made using the marketplace balance. The marketplace balance is not held in a regulated capacity. Commerce only becomes involved if funds are transferred to a bank account. Since the payment issue relates to the unregulated marketplace, not Commerce's regulated activities, the ombudsman cannot require Commerce to resolve the complaint or return the money. The ombudsman cannot determine which businesses should be regulated, nor can it require a regulated business to fix problems caused by an unregulated part of the same group.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website