Shill bidding is also illegal in many places and can carry severe penalties. Buying an item from someone you know, as long as you don't intend to artificially increase its price or desirability or violate our feedback manipulation or search and browse manipulation policies. Shill bidding is unfair to buyers and it's illegal in many places in the world. We have this policy to discourage shill bidding and to make it clear what can happen when people don't follow these guidelines.
Avoiding eBay fees is not allowed, whether intentional or not. Sellers attempting to avoid eBay fees create risk for themselves, and a poor experience for buyers. Skip to main content. Enter the key words you want to ask for help. A dialog will open as you type your search terms. Enter your search term to display live search results. A commercial practice will be unfair if it contravenes the requirements of professional diligence and it materially distorts or is likely to materially distort the economic behaviour of the average consumer with regard to the product.
This is an objective test — traders must act professionally and fairly as judged by the standards of a reasonable person.
A commercial practice is misleading if it contains false information and is therefore untruthful or if it or its overall presentation deceives or is likely to deceive the average consumer. This is the case even if the information is factually correct and it causes or is likely to cause the average consumer to make a transactional decision he would not have taken otherwise. A commercial practice is also misleading if it creates confusion with the products of competitors.
A commercial practice can also be misleading where there is a misleading omission. Freedom of choice is not limited to decisions as to whether to purchase a product or not.
In some cases, sellers have used shill bidding as part of larger fraud schemes, including schemes in which forgeries or counterfeit goods are sold as if they are legitimate valuable items.
In , the New York Times reported on three men who were part of a bidding ring in which shill bids were placed in 1, auctions intended to deceive art buyers into believing they were purchasing valuable and rare paintings. Penny auctions create significant opportunity for shill bidding. Each bid costs money. When the buyer pays for a bid and makes a low bid, those participating in a penny auction scam will enter false shill bids to continue driving the price of the item higher and higher.
Often, the bidder loses the investment he made to purchase the right to the bids. Penalties for shill bidding vary depending upon whether those accused of involvement in the scam face state charges or federal criminal charges. When the eBay shill bidding is part of a large scheme and involves other crimes like forgery or the sale of counterfeit goods, penalties become more serious.
The Donnelly Act has been used by prosecutors against people accused of shill bidding in online auctions.
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