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EBAY » Topics » Customer complaints or negative publicity about our customer service could diminish use of our services.This excerpt taken from the EBAY 10-K filed Feb 28, 2007. Customer
complaints or negative publicity about our customer service
could diminish use of our services.
Customer complaints or negative publicity about our customer
service could severely diminish consumer confidence in and use
of our services. Measures we sometimes take to combat risks of
fraud and breaches of privacy and security can damage relations
with our customers. These measures heighten the need for prompt
and accurate customer service to resolve irregularities and
disputes. Effective customer service requires significant
personnel expense, and this expense, if not managed properly,
could significantly impact our profitability. Failure to manage
or train our customer service representatives properly could
compromise our ability to handle customer complaints
effectively. If we do not handle customer complaints
effectively, our reputation may suffer and we may lose our
customers’ confidence.
Because it is providing a financial service and operating in a
more regulated environment, PayPal, unlike eBay, must provide
telephone as well as email customer service and must resolve
certain customer contacts within shorter time frames. As part of
PayPal’s program to reduce fraud losses, it may temporarily
restrict the ability of customers to withdraw their funds if
those funds or the customer’s account activity are
identified by PayPal’s anti-fraud models as suspicious.
PayPal has in the past received negative publicity with respect
to its customer service and account restrictions, and has been
the subject of purported class action lawsuits and state
attorney general inquiries alleging,
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among other things, failure to resolve account restrictions
promptly. If PayPal is unable to provide quality customer
support operations in a cost-effective manner, PayPal’s
users may have negative experiences, PayPal may receive
additional negative publicity, its ability to attract new
customers may be damaged, and it could become subject to
additional litigation. As a result, current and future revenues
could suffer, or its operating margins may decrease. In
addition, negative publicity about or experiences with
PayPal’s customer support could cause eBay’s
reputation to suffer or affect consumer confidence in the eBay
brands as a whole.
This excerpt taken from the EBAY 10-Q filed Jul 28, 2006. Customer
complaints or negative publicity about our customer service
could diminish use of our services.
Customer complaints or negative publicity about our customer
service could severely diminish consumer confidence in and use
of our services. Measures we sometimes take to combat risks of
fraud and breaches of privacy
Table of Contents
and security can damage relations with our customers. These
measures heighten the need for prompt and accurate customer
service to resolve irregularities and disputes. Effective
customer service requires significant personnel expense, and
this expense, if not managed properly, could significantly
impact our profitability. Failure to manage or train our
customer service representatives properly could compromise our
ability to handle customer complaints effectively. If we do not
handle customer complaints effectively, our reputation may
suffer and we may lose our customers’ confidence.
Because it is providing a financial service and operating in a
more regulated environment, PayPal, unlike eBay, must provide
telephone as well as email customer service and must resolve
certain customer contacts within shorter time frames. As part of
PayPal’s program to reduce fraud losses, it may temporarily
restrict the ability of customers to withdraw their funds if
those funds or the customer’s account activity are
identified by PayPal’s anti-fraud models as suspicious.
PayPal has in the past received negative publicity with respect
to its customer service and account restrictions, and has been
the subject of purported class action lawsuits and state
attorney general inquiries alleging, among other things, failure
to resolve account restrictions promptly. If PayPal is unable to
provide quality customer support operations in a cost-effective
manner, PayPal’s users may have negative experiences,
PayPal may receive additional negative publicity, its ability to
attract new customers may be damaged, and it could become
subject to additional litigation. Current and future revenues
could suffer, or its operating margins may decrease. In
addition, negative publicity about or experiences with
PayPal’s customer support could cause eBay’s
reputation to suffer or affect consumer confidence in the eBay
brands as a whole.
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