Peeved online traders call in watchdog

By PETER GRIFFIN

Online traders caught in the battle between the auction site Trade Me and its fledgling competitor Oneway have lodged a complaint with the Commerce Commission claiming Trade Me is behaving anti-competitively.

This month, Trade Me announced that it would begin charging 25c an item for "bulk sellers" - those with multiple listings but low selling rates.

Most Trade Me members accept the charge but fierce debate has raged around a decision to block competing sites from listing feedback associated with trading by Trade Me members.

In an email to bulk sellers, which Trade Me said numbered fewer than 50, the company said it would not allow members using Oneway.co.nz to display their Trade Me feedback records.

"You can continue to use [www.oneway.co.nz] and support the people that run it. You do so at your own risk. If that is the case, Trade Me will close your membership and delete your feedback record."

Trade Me offered a $25 credit and reinstatement of membership if users removed Trade Me information from Oneway's site.

Some members, who believe they have rights to feedback associated with their trading, view Trade Me's offer as a bribe.

One Trade Me member, who has sold more than 800 items through the website, told the Herald Trade Me was abusing its position.

"I feel that Trade Me has abused its power of monopoly and the very people that they owe their success to are being threatened, bribed and blackmailed," said the woman, who is also a member of Oneway.

Commerce Commission spokeswoman Jackie Maitland said four complaints had been received about Trade Me. The commission was investigating.

Traders have set up a website devoted to the issue at au.geocities.com/just_traders/page1.htm.

Members also claim that questions aimed at Trade Me's management have been ignored.

"Trade Me has been disabling traders' access to the community message boards if they mention the email or if they ask challenging questions," the Trade Me member said.

"To make matters worse, Trade Me can only be contacted via their 0900 number or email, which takes up to five working days to be processed, so the only other alternative to get some answers is to utilise the message board."

But the company is standing firm.

Founder Sam Morgan said members' feedback could be used only on Trade Me's website because the company could not guarantee the authenticity of information on other sites.

"We don't have control over other people's systems. There's quite a serious risk to consumers. Trade Me doesn't want to have the risk of attributing trust."

He said Trade Me users would have to opt into an amended policy.

Morgan admitted that the email sent out about Oneway and its operator, Shane Anderson, was a "kneejerk reaction".

Anderson said he would take legal action over allegations levelled at him in the email.

If anything, the stoush shows the value of online auctions. Between $20 million and $30 million is sold through Trade Me each month. The company earns a commission on sales ranging up to just under 5 per cent.