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PayPal Does Something Truly Evil

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If truly dispicable acts are now the norm for PayPal (EBAY), Scott Thompson should kick off his new Yahoo (YHOO) gig with a dog fight.

Sharing a heartbreaking account of a buy gone horribly wrong, Helen Killer of the hilarious Etsy send-up Regretsy posted an email from a reader who saw a treasured item destroyed at the behest of PayPal.

Reader Erica writes in describing a recent sale she made to a buyer in Canada. The item in question was a pre-WWII French violin worth $2,500. The buyer, however, disputed the label -- which isn't uncommon, Erica claims, but shouldn't detract from the craftsmanship of the instrument. She writes, "Rather than have the violin returned to me, PayPal made the buyer DESTROY the violinin [sic] order to get his money back. They somehow deemed the violin as 'counterfeit' even though there is no such thing in the violin world."

And to the delight of the buyer, he sent Erica a photo of the destroyed antique.

Erica has since been on the phone with "numerous reps," but they have "100% defended their action and gave me the party line."

And lest you think Erica's situation was solely due to one disgruntled PayPal executive who's declared a war on art, the destruction of items that are simply suspected of being counterfeit is actually laid out in the company's Terms of Service.

The very definition of "Smash first, ask questions later."

Although this seems a tad excessive, it doesn't stray far from other acts of delusional and malevolent behavior perpetrated by PayPal. The company has refused to reimburse customers who were overcharged when buying Mac OS X Lion (AAPL) through iTunes, forced a seller to pay nearly $300 over a disputed sale of a Droid (GOOG) that had been corrected, and -- coincidentally -- froze Regretsy's accounts that were set up for a children's charity!!!

Man, did PayPal just adopt a bastardized version of Google's slogan "Don't be evil" or what?

(See also: Apple Will Become "Uncool" in 2012, Predicts Analyst and Apple's Headed for a Fall, Says Former Exec)

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