Over the past decade, online transactions have changed a lot and enabled the merchants to increase their customer base and also initiated a number of successful companies which operated online. Consumer-to-Consumer (C2C) commerce has created new opportunities for consumers and businesses. The use of Internet has made auctions very easy, cost-effective and transparent. eBay India, Yahoo, auctionindia.com and Bidrivals.com are some of the famous auction sites in India. The present article traces the evolution of auctions by highlighting its advantages, challenges, issues and legislations related to online consumer protection in various countries. This article takes the example of eBay and critically examines the mechanism, payment method, and consumer protection policies at eBay.

An auction is a type of sale which traces its origin to 500 BC in Babylon. Subsequently, the process of auction has grown progressively over the centuries and has taken diverse forms. Some auctions are organized by public officers, some are ordered by courts, some are conducted by professional auctioneers or directly by traders. The traditional auctions were timed by the use of a candle or a preset clock and some end with the fall of the auctioneer's hammer. Some allow bidders to make increasing bids and others use a mechanism by which the price drops or a combination of both.

E-auction has replaced the conventional methods of requesting sealed tenders. Online auctions for the sale of everyday consumer goods and services have, in recent years, developed exponentially. The mechanism involved in e-auction is similar to the traditional process where a pool of suppliers are selected, request for quote is sent to the suppliers, then the suppliers are short listed and invited to participate in the e-auction.After the selection of the bidders, selected copies of the terms, commercial conditions and bid rules are distributed to the suppliers. The organization which is proposed to buy arranges training program to the suppliers, where they log on to the website where bids are made. The identities of the bidders are usually concealed but are provided with a ranking in relation to other bidders.

With more than 90 million active users globally, eBay is the world's largest online marketplace, where practically anyone can buy and sell anything. eBay was founded in 1995, connecting a diverse and passionate community of individual buyers and sellers, as well as small businesses. eBay is one of the most efficient markets created by connecting individuals and it is the first example of social online networking. Right from its inception till date it has grown to have its presence in 39 markets. Their collective impact on e-commerce is staggering. A recent survey showed that in 2009, the total worth of goods sold on eBay was $60-$2,000 bn every second.

Cyber Law Journal, Online Auctions, Online Consumer Protection, Consumer Protection Policies, e-commerce, Social Online Networking, Conventional Methods, Feedback Mechanism, Online Payment System, Online Auction Websites, Online Transactions.