You can bet your Bottom dollar on that.
You can also Bet your bottom dollar that Ebay/Paypal can if they want close ALL the loopholes if they want, but for various reasons they will never do that.
Closing all the loopholes would mean either a Massive overhaul of there system, or a Dramatic increase in workforce, or even both, no matter which way you go Very expensive, too expensive for either company whose profits have been consistantly declining over the past few years.
Also there is another factor, They NEED us. We all know that Ebay is moving away from an Auction site to more of a Marketplace like Amazon.
However the MAIN reason that people go to Ebay is to get a GREAT DEAL, Plain and Simple. You get a better price on an Ebay Auction than an Ebay or Amazom fixed price listing.
Sellers who purchase items from Legit sources RARELY ever Auction them, there simply is NO Money in it. So those great prices must come from auctions where the Source of the items are in question. Those auctioned items help controll the fixed price listings of similar items, That puts Ebay in a VERY BAD Position.
Take away all the Auctions and all the fixed price listings go up, which will put them in DIRECT competion with Amazon and they will LOSE and they KNOW THAT!! Ebay has been losing to Amazon over the past few years, Read my other posts on this subject.
So Ebay needs a certain amount of sellers who deal in Questionable items in order to keep the overall pricing BETTER that Amazon. Ebay is also working hard to have the best of BOTH worlds, but that is impossible.
At some point most analysts believe that Ebay will make a hard decision and get into an all out footrace for customers with Amazon, and they will lose.
This I believe is the REAL reason that Ebay will for the time being only make very minor adjustments to there system, until they believe that they can compete with Amazon.
As for Paypal, their Main problem is the U.S. Goverment, Paypal has been acting like a Bank for years, the U.S Goverment has been pressuring them to file for an Official Bank Charter and get FDIC Insurance coverage. Paypal refuses. A bank Charter would mean that they are indeed a Bank and MUST Comply with ALL of the U.S. Banking regulations
which would cost them Dearly, Paypal is trying to avoid this at all costs.
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Do you ever think Ebay reads this forum? 
