Monday, October 27, 2008

Seller threatens lawsuit after negative eBay feedback

While it is important that businesses have means to protect their reputation (especially on the ground of defamation), a victory for the scorned seller will be bad news for buyers AND sellers. Buyers will have less incentive to post feedback due to the threat of lawsuits. They will also have less trust in reviews and ratings since they know it is forcibly positively biased. As a result, the reputation system that benefit sellers will lose its credibility. Everyone loses. From the Register.

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