question re Shill bidding

[izabsmiling]

I know that it's a no no as far as ebay goes .

Is it or isn't it also illegal  ?

[izabsmiling]

Here is a guide 

http://reviews.ebay.com.au/Shill-Bidding?ugid=10000000175726849

Shill Bidding is the term used to describe when you, your employees, family members or someone you know places false bids onto your auctions to increase the end sale price for other bidders. This will force other bidders who really want your item to place a higher bid. You will end up selling the item at very high price.Shill Bidding not only has never been allowed on eBay, but there can also be severe penalties for anyone caught Shill Bidding. It's illegal to use shill bidding on your auction. Before starting your auction, make sure you do the market research about the best starting price for your item, whether or not to use reserve price so you won't lose your item too cheap. All the best 🙂
Guide ID: 10000000175726849Guide created: 06/06/12 (updated 08/06/12)

[purple.cow]

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.

It happens frequently in property auctions.

[a_beautiful_room]

When you buy at an auction house they make bids on behalf of the vendor to the reserve price. They don't say it verbally at the time, but its in the agreement you sign when you sign up to bid. The difference is, the reserve is declared and they wont sell below it, so what does it matter who bids before then.

[izabsmiling]

Thanks Moorna and a beautiful room .

 I've heard of the vendor bid and wondered about that .

[***super_nova***]

The straight forward answer is that shill bidding is absolutely illegal no matter where it occurs,

That is not true; in some countries, some states in USA, it is illegal, in others it is not against their law.  I believe it also varies here in Australia state from state, at least it did when I did some research on the subject some years ago.  The regulations also differed from real estate to other auctions.  Couple of years ago somebody in UK was actually charged for shill bidding on eBay.   Therefore eBay forbids it across the board; it would be totally unworkable just to go on sellers' location.

[coast_golf]

Vendor bids are not permitted on eBay for 2 reasons, eBay expressly prohibits it and the law states (in QLD anyway, I can only assume it's similar in other states) that a vendor bid cannot be made once the property is 'on the market'. As there are no reserve prices on eBay save for a few categories it is illegal to place a vendor bid.

[izabsmiling]

As a buyer I am glad that it is forbidden here 🙂

I suppose it would also allow sellers to pay less in listing fees ?

[izabsmiling]

and build up their feedback ? 

[izabsmiling]

http://www.abc.net.au/science/articles/2005/10/05/1467138.htm

Auction cheats give themselves away

Wednesday, 5 October 2005Nicole Manktelow
ABC

How do you know if the people bidding against you at an online auction are real or fake?

It's just become easier to spot dummy bids at online auctions, says an Australian PhD student.

He has found telltale signs of the illegal act of shill bidding, when dummy bidders collude with sellers to drive up the price.