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In effect this is "shill bidding" by the auctioneer - i.e. more then likely that did not happen. It's well established that shill bidding is fraud. Shill bidding is a practice whereby the seller or seller's agent bids up lots, possibly so that they reach an unnamed reserve, or just to encourage. Although it isn't on point, the opinion sure does sound like the illegality of shill bidding applies to a public bidder. I only wonder because I've been in the antiques trade for years and I know for a fact that many auctioneers will routinely take bids off the wall. Those who commit shill bidding could be arrested on federal charges under 18 U.S. Code Section 1343 for wire fraud. In an online auction it is almost impossible to prevent — especially if the bidder has left a maximum absentee bid and allows the auctioneer/staff or software to bid for him. And if they have any kind of technical savvy, catching them in the first place will be a tall . You are going to be sued in accordance with antitrust law under the Donnelly Act, which prohibits bid rigging and price fixing. Online auction bidders have been given a "wake-up call" after a man was prosecuted for bidding against himself to raise prices. While I suspect the OP's rant is probably generally true regarding shill bidding or efforts by auction houses to get the maximum commission on sales, this part "One time I called Comic Connect and asked what the shipping status was on an item I had bought; the guy said "hold on, you're messing up my . Shill bidding may be illegal but proving it beyond a reasonable doubt in front of 12 jurors is a different matter entirely. . Thirdly, eBay won't do anything of a sort even if you are 100% convinced. "shill Bidding" Exposed In Online Auctions State Attorney General Spitzer today announced the resolution of three cases arising from an investigation of phony bids in on-line auctions. The complaint alleges that Auction Nation and Auction Yard continue to shill bid in their online auctions, despite knowledge of the Attorney General's investigation and numerous consumer complaints. We have the scams section, I've also let this thread stay up - I mean this is where "scammer" begins to enter a grey area. However, the resulting higher prices on the site boost the value of eBay's share of the sales. Both shill bidding and . However, as I stated, the issue of the appeal did not concern the act of shill bidding. I know that shill bidding is against the rules in ebay world, but is it actually illegal in real life auctions? This is not illegal, but stay with me. What is shill bidding on eBay? When you place a bid in your own auction, you are fraudulently claiming that some buyer is willing to pay you that amount for the item you are selling. "In theory, one way this might happen is if a home owner colluded with a friend to register to bid (and did so), but to stop short of the reserve figure. Proliferation of illegal shill bidding certainly improves the ASP. Proxibid takes 10% from the seller's end, so the higher the hammer price, the more money the site makes. Shilling is illegal in many circumstances and under many jurisdictions because of the potential for fraud and damage; however, if a shill does not place uninformed parties at a risk of loss, the shill's actions may be legal. If a vendor or seller bids in any other circumstances this is illegal under the Fair Trading Act as it misleads genuine bidders about the price. In this case the bids were placed and then retracted once they had reached my maximum bid level. This illegal practice is referred to as "shill-bidding". Warning over eBay bidding trick. Shill bidding—legal or illegal—may be occurring. Leaving a maximum $10,000 online bid too often results in a purchase price of exactly $10,000. the bid is clearly identified at the time it is made as a vendor bid. shill bidding is illegal. A shill bidder can just claim they were actually interested in the item but changed their mind at the last minute or got outbid. Shill bidding is a practice whereby the seller or seller's agent bids up lots, possibly so that they reach an unnamed reserve, or just to . "shill Bidding" Exposed In Online Auctions State Attorney General Spitzer today announced the resolution of three cases arising from an investigation of phony bids in on-line auctions. "that being said" how soon did the second chance offer come to you. Shill bidding, though very common nowadays, is illegal. Interestingly, their terms and conditions (which you must sign prior to getting a bidding number) basically condones shill bidding. This type of sneaky behavior stains the auction process & easily creates broken trust between real, genuine bidders & the sellers. SHILL bidding starting making headlines after eBay pulled their biggest trading card seller from the website. If eBay concludes that shill bidding has taken place, a wide range of actions may occur . Why bid rigging is unethical and illegal. Many states have statutes prohibiting the practice and the auction house and/or auctioneer can be disciplined or lose their license and right to do business, particulalry if a continuous pattern of illegal activity can be shown. In 2010 there was a first criminal case of a UK seller taken to court to receive a £5,000 fine and . Shill bidding is also illegal in many places throughout the world, with severe penalties. Is it illegal to have a shill bider? Best thing you can do is if you suspect that illegal . Shill bidding—legal or illegal—may be occurring. Shill bidding is a method of placing artificial bids on an eBay auction in order to generate false sense of competition in the hope of increasing the price of the auction. The Donelly act is located in New York's General Business law Code section 340-347. Those who commit shill bidding could be arrested on federal charges under 18 U.S. Code Section 1343 for wire fraud. The most notorious case of shill bidding on eBay involved a ring of U.S. sellers who committed art fraud for which three of the participants were prosecuted. However, when someone bidding on an item knows the seller, they might have information about the seller's item that other shoppers aren't aware of. Shill bidding—legal or illegal—may be occurring. The seller, or the friend of the seller, will set up an unconnected account to raise the price of an item. In misleading advertising cases, commonly challenged conduct includes false price, performance and other product claims (e.g., omitting key limitations or . " He defines shill bidding, an illegal but widely extant practice in online venues, including eBay, as "bidding without the genuine intent to purchase, and rather with the intent to ensure price protection for the seller by one of two methods." Method One: to ensure a minimum price for the lot. Shill bidding is fraud, it deceives a potential buyer watching an item, it enriches those who do it and robs the public of a fair auction. Is Shill Bidding A Cyber Crime? You are going to be sued in accordance with antitrust law under the Donnelly Act, which prohibits bid rigging and price fixing. It "strongly refutes" allegations of its involvement in shill bidding, market manipulation, or any other illegal or unethical practices and wishes it was given an opportunity to respond before the . But that is not true. Essentially, the strategy works in the sense that ever since the auction focus moved from classics like Packards and Duesenbergs to muscle cars, B-J has been able . Shill bidding is when a seller uses a separate account, be it one of their own, a friend or a family members or they ask someone to bid on their auction to artificially raise the price of the auction. SHILL BIDS NOT ILLEGAL . AB 2039 also prohibits the use of "shill" bids (bids not from a bona fide purchaser that are used in auctions to drive up the sales price during the auction process), while permitting "credit bids", and seller bids with full disclosure. Shill bidding where there is a minimum reserve bid and you use people to place bids to get the item up to the reserve amount still is seeking to defraud the buyer, since they may not necessarily know or bid up to that reserve amount without the shills bidding it up. He was fined £3,500 and ordered to pay costs of £1,456 and carry out 250 hours of unpaid work. Sometimes, what appears to be shill bidding may actually be legitimate bidding activity. Many states have statutes prohibiting the practice and the auction house and/or auctioneer can be disciplined or lose their license and right to do business, particulalry if a continuous pattern of illegal activity can be shown. SHILL bidding starting making headlines after eBay pulled their biggest trading card seller from the website. The board is comprised of five auctioneers and two at-large "consumer" members. Bid rigging is an illegal practice in which competing parties collude to choose the winner of a bidding process while others submit uncompetitive bids. In the real market, price fixing, market colllusino, oligopoly, monopoly or shill bidding is illegal. Shill bidding is a practice whereby the seller or seller's agent bids up lots, possibly so that they reach an unnamed reserve, or just to encourage ever-higher bids. LINK Back to top Reply Replies (1) 0 7 stout Arizona Fan In essence, it is common law fraud to allow shill bidding, even if it is not expressly prohibited by statute. It is illegal in many jurisdictions to bid on eBay with a slush fund. It is an unfair method to get higher returns and is used by some merchants for mileage in a property sale. . Unless their primitive tools find something obvious like a common IP address (the real pros aren't that silly), eBay will happily do absolutely nothing—believe me, I've had the experience . In the case of a publicly-financed entity . This is why it is considered to be an unfair way of competing with others. Snipped this from another site: Shill bidding was included in the definition of criminal fraud in the 2006 Fraud Act. Trading standards officers warn it is illegal to push up a price artificially by bidding against yourself or by getting family or friends to do so. The Donelly act is located in New York's General Business law Code section 340-347. Shill bidding is when someone bids on an item to artificially increase its price, desirability, or search standing. Shill or dummy bidding - the practice of bidding for the purpose of "running up the bids" without the intention of buying - is illegal in Australia, Mr Ellis explained. His company's auctions are located at: Mike Brandly, Auctioneer, Keller Williams Auctions and Goodwill Columbus Car Auction. Reporting shill bidding: Shill bidding reports are investigated thoroughly. (Shills don't want to have the same IP address as the seller.) A shill bidder can just claim they were actually interested in the item but changed their mind at the last minute or got outbid. Shill bidding is falsely advocating by placing fictitious bids in an auction. Needless to say this practice is both illegal and is against eBay rules. This is what is meant by shill bidding, which is a violation of eBay rules and, moreover, illegal. Aside from the illegal shill bidding that Swoopo is conducting I also feel that this site should not be classified as an auction site. if it was a day or two after no worries. In essence, it is common law fraud to allow shill bidding, even if it is not expressly prohibited by statute. It is illegal most everywhere. Yes, shill bidding is an officially illegal practice. I can't say that I have ever heard of a shill bidding scheme being prosecuted. As for ebay encouraging fencing through policy manipulations, law enforcement agencies will tell you that ebay is the largest venue for stolen goods in the world. 2 Shill bidding is illegal in the United States Credit: Getty What is shill bidding? If a vendor or seller bids in any other circumstances this is illegal under the Fair Trading Act as it misleads genuine bidders about the price. Yes, shill bidding is an officially illegal practice. Shill bidding occurs when someone places a bid on an auction for the sole purpose of stimulating bidding activity or raising the bid prices-with no intention of purchasing the product. There are several types of internet auction fraud, but the most common type is shill bidding. Not that I approve of shill bidding but I've always approached any sale with the realization that a smart seller is always going to try to do everything they can to get the most money for their product. Discussion of New Zealand online auction "shill bidding" advertising: Auckland-based car company fined $165,000 under New Zealand Fair Trading Act The potential routes to deception are many. This is the only case that I could find that contained that statute in a Louisiana Appellate Court. And if they have any kind of technical savvy, catching them in the first place will be a tall . Last November eBay changed its rules to conceal bidders' identity — making it even more difficult for customers to see whether sellers are bidding on their own lots. Shill bidding is not allowed on eBay. "Recently it was determined that individuals associated with a trading card seller, PWCC, have engaged in 'shill bidding,' which is prohibited on eBay," the statement claimed. Google invested $50 million in the site in March, according to the New . Shill bidding is illegal in Texas. This kind of utterly irresponsible corporate behavior literally borders on criminal. ---scalping is illegal too---. Because names of bidders are anonymized, this comes very close to being considered "shill bidding" which is illegal. This is fake bidding. Yes. if it was almost immediately after the item closed. Typically, the eBay shill bidding scam begins when a seller lists an item and begins accepting bids. Shill bidding is not allowed on eBay. TweetEmail Tweet EmailThe use of bidding bots should (if they are not already) be illegal. Bid rigging stifles free-market competition, as the rigged price will be higher than what might have resulted from a competitive bidding process. SHILL bidding started making headlines after there were reports that eBay restricted their biggest trading card seller from the website. Anyone caught in the act of shill bidding can now face a fine of as much as £5000 for each item they have sold in this way. Firstly, shill bidding is criminal fraud. LINK This illegal practice is referred to as "shill-bidding". They generally artificially increase the margins of the contractor and the cost to the owner. It is illegal most everywhere. The seller instills friends and family, or uses aliases, to bid on the item. Shill bidding may be illegal but proving it beyond a reasonable doubt in front of 12 jurors is a different matter entirely. The goal of a competitive bidding process, says Dr. Sands, is for the owner to get the most value at the best price. The process is known as shill bidding . the bid is clearly identified at the time it is made as a vendor bid. This is why you see the same items sell over and over. Buyers are adversely affected by slanted bidding, since they are forced to pay artificially inflated prices. At issue, according to the statement from eBay, is shill bidding-the practice of placing bids on an item in an effort to increase its selling price. I've always suspected that the cars owned by Craig Jackson and the B-J company were often driven up by shill bidders working for the company. some one once told me he was charged trying to corner a market for certain product or service.and had to go to court in the 70's Theoretically, scalping tickets for concerts is 'illegal' but it's never enforced. The main contributions And she continued "We invest over £6m each year in state-of-the-art technology to detect shill bidding and other illegal activities. I mean shill bidding is against eBays ToS, and they have MUCH more advanced systems than any of us assuming it's occurring, so why wouldn't they be catching it and shutting down his account? Mike Brandly, Auctioneer, CAI, AARE has been an auctioneer and certified appraiser for over 30 years. Auction.com is being sued for allegedly inflating the price of one of its online listings through the use of a shill bidder. It happens frequently in property auctions. Shill bidding is a crime and auctioneers need to do everything they can to help eliminate it from the auction industry. As the California Association of Realtors dug into the issue, Creel said a more telling picture of shill bidding emerged. Shill Bidding. Step 1: What Is Shill Bidding? Shill bidding is illegal and it is important for people to understand that there is not, nor has there ever been, room for illegal activity on our site" laughing. Shill bidding is when sellers bid on their own items to attract bidders and achieve higher selling prices, and is against eBay's policy. In this paper we study the shill bidder ecosystem. Another factor is Shill bidding, this is the general idea of a person placing a bid to drive up the price (helping the seller increase revenue) without actual intention of purchasing the item. This is shill bidding and it is illegal. ie. The board's actions include turning a blind eye to an illegal practice called "shill bidding," ignoring the apparent victimization of elderly auction clients, racism and possible travel voucher and payroll fraud. Author has 10.4K answers and 13.8M answer views Is it illegal to bid on your own auction? By Harrison K. Long - Source of some information is the California Association of Realtors. Shill bidding is against eBay rules and is illegal under the 2006 Fraud Act. Shill bidding and the law: bidding on your own item on eBay In 2010, Paul Barrett became the first person to be prosecuted in the UK for bidding against himself on eBay (a practice often referred to as 'shill bidding'). 2Shill bidding is illegal in the United StatesCredit: People who engage in the practice are known as shill bidders, and a bid placed deliberately to push up prices is described . Shill billing most often occurs when a seller is either getting no bids or is not happy with the bid prices thus far. Shill bidding refers to the practice of placing bids on eBay items or other auction items in order to drive up the price. For that reason, proxibid has no incentive to change anything. Secondly, with masked bidding IDs it's not possible for a mere bidder to "prove" anything. In the first case, three individuals pleaded guilty to criminal charges stemming from actions they took to inflate the prices of artwork and other merchandise . The use of them to bid against people (swindling) is totally unethical. No shill bidding is illegal, like against the law. Moreover, shill bidding in on-line auctions is illegal in some countries, such as the United States, and can be considered as wire fraud, a felony which can lead to a maximum penalty of up to four years in prison and a million dollars in nes [14]. 2Shill bidding is illegal in the United StatesCredit: Shill bidding is a practice whereby the seller or seller's agent bids up lots, possibly so that they reach an unnamed reserve, or just to encourage ever-higher bids. artificially driving up the . It should be classified as a gambling site and subject to the federal and state laws that dictate the rules similar to a lottery or a Vegas casino. Shill bidding can happen regardless of whether the bidder knows the seller. I would have a red flag flying in my face. It's totally against all auction websites policy and very not o-k if you have any sense of moral integrity. We posted this photo back in August (thanks Duncan!). It's an appropriate reminder to all penny auction, (pay-per-bid, bid-fee, entertainment shopping, reverse auctions, unique bid auctions, reveal/Dutch auctions) … Shill bidding—legal or illegal—may be occurring. The straight forward answer is that shill bidding is absolutely illegal no matter where it occurs, but a seller, or a party of the seller IS permitted to place a bid perfectly legally provided they declare that bid as a 'VENDOR BID' at the time of making the bid. In the first case, three individuals pleaded guilty to criminal charges stemming from actions they took to inflate the prices of artwork and other merchandise . 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