eBay User Agreement Update July 2024 - AI Use, Binding Contracts & Content Moderation

Liz Morton
Liz Morton


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eBay has released an update to the user agreement as part of today's Summer Seller Update with an effective date of  July 26, 2024.

The following summary of changes was provided as part of the update announcement:

Updates to our User Agreement

  • We’ve provided details on how we use artificial intelligence (AI) on eBay to provide and improve the Services we offer you, including, when available, customized and personalized experiences.
  • We’ve updated our purchase conditions to clarify that in some clearly identified transactions, a legally binding contract only occurs when the buyer pays for the item.
  • We describe additional types of conduct and content that are prohibited when using eBay Services.

Users are encouraged to read the entire updated agreement carefully, but here are a few excerpts highlighting some important changes and additions:

Use Of AI

eBay added a section to the user agreement calling out various uses of AI on the platform and disclaiming any guarantee of availability or accuracy of AI tools.

We may use artificial intelligence or AI-powered tools and products to provide and improve our Services, to offer you a customized and personalized experience, to provide you with enhanced customer service, and to support fraud detection; availability and accuracy of these tools are not guaranteed.

Prohibited Conduct and Content

eBay added additional language saying in addition to false, inaccurate, misleading, deceptive, defamatory, liberlou or illegal content, users also agree not to provide content that is "inappropriate, harmful, or violates and/or infringes the rights of others."

Old Version:

You will not...post false, inaccurate, misleading, deceptive, defamatory, libelous, or illegal content;

New Version:

You will not...provide us with content that is false, inaccurate, misleading, deceptive, defamatory, libelous, illegal, inappropriate, harmful, or violates and/or infringes the rights of others;

Unfortunately, eBay does not provide any definition for these very vague terms, leaving the meaning of inappropriate and harmful apparently up to eBay's discretion.

While it avoids taking aim at specific political or hot button issues, eBay is likely to run into the same problems with this update as Etsy's recent changes to their prohibited items policy.

Etsy Prohibited Items Policy Update Targets Political Activism, Violence & Hate
Etsy updates Prohibited Items policy taking aim at political activism with wider latitude to remove items deemed violent, degrading, or hateful.

Etsy's move to a more vague and open ended policy may have in part been a reaction to being name-checked in Supreme Court arguments about content moderation laws passed in Florida and Texas in response to concerns that social media companies were censoring their users, particularly those with conservative viewpoints.

The laws contain provisions that limit decisions social media companies can make about how and which user-generated content is presented to the public, and others that require social media platforms to provide individualized explanations to users about their editorial choices - some of which could extend to online marketplaces as well as more traditional social media sites.

eBay faces the same risks as Etsy from these online content moderation efforts, not to mention having a vested interest in maintaining Section 230 protections as their primary defense in the ongoing EPA lawsuit that could potential cost eBay $2 Billion.

eBay Cites Section 230 Protections In EPA Suit Defense
eBay seeks to dismiss EPA environmental suit, saying Section 230 protects them from being liable for items sold by 3rd parties on the site.

It will be interesting to see if eBay starts taking a stronger stance on moderation under the guise of "inappropriate or harmful content" once this new user agreement takes effect.

Legally Binding Contracts

Old Version:

You enter into a legally binding contract to purchase an item when you buy the item, commit to buy the item, your offer for the item is accepted, you have the winning bid for the item, or your bid for the item is otherwise accepted, regardless of when payment is due or received,

New Version:

You enter into a legally binding contract to purchase an item when you buy the item, commit to buy the item, your offer for the item is accepted, you have the winning bid for the item, or your bid for the item is otherwise accepted, regardless of when payment is due or received unless the transaction terms state that you are required to pay for the item before a binding contract is formed;


How will these changes impact your eBay business? Let us know in the comments below!

eBaySeller Updates

Liz Morton Twitter Facebook LinkedIn

Liz Morton is a seasoned ecommerce pro with 17 years of online marketplace sales experience, providing commentary, analysis & news about eBay, Etsy, Amazon, Shopify & more at Value Added Resource!


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