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Not true!!! The major reason why I put up that post about ebay in the first place was the fact that they allowed an alumni directory of my fraternity to be sold on their site. Their policies explicitly forbid items to be sold which include personal contact information, etc. The directory was the 2001 edition just published this fall! I reported it both to ebay and to SAE HQ. I don't think that HQ had enough time to do anything about it since the auction only lasted a week to begin with. Ebay not only didn't
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I'm sorry that happened. No one's address should be out there for sale! However, one problem with eBay is that is relies on self-policing - someone has to report an item, and then they may take their own poky time to do something about it. I am allowed to post a liver for sale, and someone has to tell eBay it's there before my auction will get shut down. eBay doesn't employ people to review each sale item. (But I'm sure if I tried to sell a liver, eBay would work more quickly to take it off since that's high-profile.) But it sounds as if they goofed up on this one - they should have taken that down as soon as you reported it.
This is a persistent problem I've seen with other items eBay has banned that aren't quite as mediagenic as sales of body parts. Even once you convince eBay that they really oughtn't sell something, the concerned citizens still have to spend THEIR time patrolling eBay to make sure no one tries to sell it anyway. This, as far as I am concerned, should be eBay's job, not the users' job!