A disgruntled eBay shopper is facing possible libel charges after posting negative feedback about a seller who sold him a mobile phone.

Chris Read, from Kent, was not satisfied with his purchase of a Samsung phone and posted a complaint on the seller's feedback page saying: "Item was scratched, chipped, and not the model advertised on Mr. Jones' eBay account."

After posting the comments and sending the phone back, Read received a message from the seller, Joel Jones, asking him to retract the comments. Read refused, arguing that the feedback was honest and valid and not malicious in any way.

According to Read, when he refused to withdraw his remarks, he received a formal letter and statement from Jones threatening court action if he did not sign it, adding that he would be liable for court costs of £175 along with " substantial" lawyers' fees.

Jones, who sells goods on eBay under the username 'onsalexuk', claimed that he provided a full refund when the device was returned, and that the comments were therefore unwarranted and are damaging his business as his lots appear further down on search results.

"If you don't like the goods then you get a full refund. Surely that is great customer service and deserves positive feedback," argued Jones.

"I'm losing money by the day and my business could go under because of it. I've been left with no option but to take legal action and I'm sure I'll be successful."

Ebay has come under criticism in recent months following changes to its feedback policies and pricing structure. Many users have said that sellers, particularly smaller traders, are now left with little or no recourse when there are problems with the sale.

"Our feedback system allows buyers to make informed decisions about who they trade with based on the experience of other users," said Richard Ambrose, head of trust and safety at eBay.

"However, on the rare occasion that something goes wrong we always encourage users to contact the seller in order to resolve the matter amicably."

Read is refusing to back down and said he will fight any further action.