eBay Ordered to Turn over Seller Data without Disclosure

eBay and PayPal may be forced to hand over seller records without disclosing the fact to the sellers. Yahoo's Motoramic blog reported on the unusual legal case brought by Ford involving the alleged sale of counterfeit goods on eBay.

"Ford Motor Co. wants eBay and PayPal to turn over data on 13 users the automaker accuses of selling fake or unlicensed Ford parts on the online auction site, including names, addresses and bank accounts - and won a court order blocking eBay and PayPal from revealing Ford's demand to the users targeted."

In a statement to Yahoo! Autos' Motoramic, Ford reiterated why it asked for secrecy: "Because this is an ongoing Ford legal case, informing the users about the information requests could compromise the investigation." U.S. District Court Judge George Steeh in Detroit approved Ford's request for secrecy, which a privacy expert called "troubling."

According to Motoramic, eBay's policies don't clearly say whether it notifies users in civil cases; it does promise law enforcement agencies investigating crimes to keep their probes secret. Other large Internet firms typically disclose any civil subpoenas or pass them to users.

So sellers beware - brands may be issuing subpeonas for your data without your knowledge.