A model for the p d→p dη reaction published earlier, including the final state interaction (FSI) of all particles, is revisited to investigate the low energy data on this reaction. The three-body problem of p–d–η scattering in the final state is approximated in terms of pairwise interactions between the three particles in the final state. Apart from a comparison with some preliminary data, two new findings relevant to the near threshold data analysis are reported. The first one points toward the limitations of an FSI factor used conventionally to extract the eta-deuteron scattering length and infer subsequently on the existence of eta-mesic states. The second result emphasizes the role of the p–d FSI and the strong Coulomb repulsion near threshold. Finally, a comparison of the above model calculation with low energy data, excludes very large eta-nucleon scattering lengths.