2.Main Content
SquareTrade
This page contains information about the SquareTrade dispute resolution scheme, including:
What it does
Advantages and disadvantages
Which complaints are eligible and which are not?
Cost
Timescale
Procedure
Outcomes
What it does
SquareTrade is an independent organisation based in the United States, which works in partnership with eBay. SquareTrade offers two main products for buyers and sellers on the internet:
- A ‘product care plan’ for new and used electronic items, which can be bought by buyers or sellers. This promises to pay for repairs or to refund the cost price if a product bought over the internet is faulty
- An online dispute resolution scheme to resolve disputes between e-buyers and sellers
Although the service is based in the US, it is available anywhere in the world.
This page gives an outline of the on-line dispute resolution scheme. For more information about the product care plan, visit the SquareTrade website.
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Advantages
- It is low cost
- It is private and confidential
- It is relatively quick
- It is independent
- There is no need to attend a hearing
- The parties retain control over the outcome
Disadvantages
- It is voluntary, so it is not possible to insist that the other party takes part in trying to resolve the dispute
- There is no guarantee that agreement will be reached
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Which complaints are eligible and which are not?
Most disputes resolved through SquareTrade come from people who buy or sell goods through eBay, the on-line auction house. However, any e-buyer can purchase a single product care plan for a one-off internet purchase, and any e-seller can buy SquareTrade cover for the goods they sell via the internet. This gives access to the SquareTrade dispute resolution scheme.
There are no limits on the claim value.
SquareTrade cannot handle disputes with eBay itself.
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Cost
The first stage, on-line ‘self-negotiation’, is free to both parties. If you are unable to reach an agreement, you can request an on-line SquareTrade mediator. This is not free, but the fee for eBay disputes is currently less than £20. Legal representation is not necessary.
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Timescale
The time it takes to resolve a dispute depends on how quickly both parties reply to emails. An agreement could be reached in a matter of days.
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Procedure
The SquareTrade process is completely online.
When a dispute occurs, the first stage is the free ‘self-negotiation’ process, which is managed by SquareTrade. The first party explains the nature of the dispute in an email, which is forwarded to the other party by SquareTrade. The other party then has 14 days to respond, and both parties are helped to negotiate a solution using the SquareTrade ‘direct negotiation’ on-line tool.
If you are unable to reach an agreement, you can request an on-line SquareTrade mediator. Again, this is an email process. The mediator will not take sides, but will encourage both parties to state their case, and will try to help them negotiate a solution both can accept. If requested, a mediator may make a recommendation, but will not issue a judgement or impose a solution. Both parties are free to accept the recommendation or not, and if both accept it, it becomes a binding settlement.
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Outcomes
The outcomes are as varied as the parties would like. One of the most common outcomes is an agreement to withdraw negative feedback on the eBay website. eBay rules require a mediator to be involved in a feedback withdrawal dispute. If one party doesn’t respond, then eBay will appoint a SquareTrade reviewer to look at the case and make a decision about the feedback issue. Other outcomes can include:
- refunds and partial refunds
- replacements
- apologies
- explanations
- compensation
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March 2007
Key websites
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