I recently read a BBC article about a cell phone proprietor from the UK who is unhappy with eBay’s “seller feedback” policy, which bans seller’s ability to leave negative feedback on a buyer. The cell phone proprietor claims that this policy emboldens buyers to hold seller’s ransom by demanding price cuts or the buyer will leave negative feedback about the seller’s practices. In other words, the buyer holds all the chips as the seller cannot refute any claims by buyers (even if they are false).

As an e-tailer I understand these eBay sellers concerns. Because of credit card companies chargeback policies, informed credit card users make very similar demands. For instance, our company website clearly states that certain items are non-refundable. However, we receive at least one or two emails a month that read like this “I am not happy with this product (which is non refundable) and want to return it for a full refund. If my refund is not issued, I will be demanding a chargeback from my credit card company.” As a retailer, I know that I will lose every time if the customer makes good on his threat and proceeds with a chrageback.

I also understand and believe in the other side of the coin – Consumer Protection. My question is simply: Is there a better way to balance business and consumer protection?