PayPal refund woes for buyer's of fake Microsoft software

In the September 2010 issue of PC Authority, we looked at problems with the PayPal dispute process regarding fake Microsoft software. We've now heard from several other readers with similar problems.

Bob from Queensland purchased Microsoft Office Professional 2007 on eBay and paid for it using PayPal. The program installed using the product key and updated online, but when he tried to use the program a warning appeared.

Bob contacted the seller who claimed the program was genuine, but the account was later unregistered, so Bob initiated a dispute via PayPal. He was told that the product must be proven not authentic by an independent third party, so Bob sent it to the Microsoft product identification service.

Refund refused
"Bob was told that the documents must be faxed to the US PayPal office and was given a cut-off date. He requested an extension to wait for the report from Microsoft, but this was denied. Microsoft subsequently confirmed that the software was counterfeit, but by now the case was closed and the refund refused.

Verifying authenticity
We contacted PayPal and it looked into the case and agreed to the refund. The company admitted that it could have provided Bob with the Microsoft details to verify the authenticity (or lack thereof) of the software so that he could have lodged his claim in the 45 days and received his money back. It also said that the fax number provided in Bob's case was the mistake of a US call centre agent as it should have been the Australian number.

Claims against pirated Microsoft software
The company has said that "we will use this case study to adjust our customer service flow. In future, when a person makes a claim against pirated Microsoft software we will direct them to the exact location required to verify authenticity. Further, we will not provide the customer with a US Fax number address.

We will also investigate cases relating to people that have purchased from the same eBay seller. As it stands, the eBay seller account is on hold pending further investigation."

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