Posted on 01/28/2007 6:38:39 AM PST by COUNTrecount
CUSTOMERS of the internet auction site eBay are being defrauded by unscrupulous dealers who secretly bid up the price of items on sale to boost profits. An investigation by The Sunday Times has indicated that the practice of artificially driving up prices — known as shill bidding — is widespread across the site.
Last week one of the UK’s biggest eBay sellers admitted in a taped conversation with an undercover reporter that he was prepared to use business associates to bid on his goods for him.
Our inquiries found evidence that a number of businesses — ranging from overseas property agencies to car dealerships — have placed bids on their own items using fake identities.
The cases raise questions about whether eBay, the world’s biggest auction site, is doing enough to protect consumers.
Shill bidding is against eBay rules and is illegal under the 2006 Fraud Act. However, the resulting higher prices on the site boost the value of eBay’s share of the sales.
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. Since its launch seven years ago, eBay’s UK website has attracted more than 15m customers. It sells more than 10m items at any given time.
One of the beneficiaries of the boom is Eftis Paraskevaides, a former gynaecologist, from Cambridgeshire. He has become a “Titanium PowerSeller” — one of eBay’s handful of top earners — selling more than £1.4m worth of antiquities a year on the site.
In a conversation with an undercover reporter last week, Paraskevaides claimed shill bidding was commonplace on eBay.
When the reporter asked whether he arranged for associates to bid on his own items, he replied: “Well, if I put something really expensive (up for sale) and I was concerned that it was going for nothing, I would phone a friend of mine, even a client of mine who buys from me, and say: For Christ’s sake, I sell you 100 quids’ worth of items a week . . . just put two grand on it, will you?” The reporter was posing as a seller of valuable antiquities. He inquired whether Paraskevaides could sell them on eBay and guarantee a minimum price.
He replied: “Leave it to me (laughs). Don’t call it shill bidding. Then I won’t be accused of shill bidding. Yes. I mean — I’ve got people.
“I’ve got some of my big clients who buy big items off me, I look after them. So I can get on the phone to America and say: Mr XXXX . . . you’re a multi- millionaire. You buy a hundred grand’s worth off me a year. Do me a favour would you. Just put — yeah. Exactly.”
He claimed eBay would never follow up a complaint against him for shill bidding because he generated about £15,000 a month in commission for the company. “Are they going to ban somebody who’s making them the best part of 15 grand a month? No,” he said.
After being told that he had been talking to an undercover reporter, Paraskevaides denied that he had ever shill bidded on eBay and claimed he was talking about clients who sometimes bid on expensive items if they wished to protect the price.
However The Sunday Times discovered businesses that have been bidding on their own items. One leading dealer from London admitted last week that that he had shill bidded in the past.
A spokesman for eBay said he expected that the company would now launch an investigation into Paraskevaides. Anyone caught shill bidding risks a permanent ban.
The spokesman added: “The change to the way bidder IDs are shown has already resulted in a safer environment for users.”
Well said!
Thanks! You are the type seller I choose to deal with.
There's two other rules that would apply as well.
One, that you never reward fraud.
Two, that when your agent goes bad and takes the other side of the deal, the deal is over.
There was one seller that had a camcorder that I was interested in and he was in the midwest somewhere and wanted $75 to ship in the US. I am in the midlands of SC but it didn't make a difference. I figured it was insurance included and asked to confirm. I got a resounding no on that. I wrote it off and never bid.
A couple of months later, one of the big box stores had it on sale up the street.
From time to time, I deal in unusual items and some of them tend to be heavy or odd sized/shaped.
I will take such things down to my local UPS store for an actual weigh in and also sometimes get other useful tips. I also offer to send a copy of any shipping reciept to any buyer. That policy helped out a few times when selling some guitars and accessories.
For the most part, I have found people are reasonable when shown that my numbers are based in reality. If a winner has a better idea, I will gladly listen. Sometimes that works out too.
There have been times that I have been off on shipping and it did cost more but I stand by what I say and have had to eat a loss once in a while.
I have even sold a few cars (mine and others) and those worked out really well.
I'm sorry, I don't agree with your post.
Never put in at a maximum more than you are willing to pay.
This is an auction, not a store.
eBay is not acting as your agent. You are using your own buying account. An auction agent is a different animal. eBay is just a marketing platform.
I'm in no means condoning the actions of the sellers. I'm stressing though, you are dealing with a street vendor environment.
Can you freepmail me her username?
I am always after odd shaped tupperware.
Sniper here too. I have an account with one of the sniping services. I set the max bid I'm willing to pay and forget about until I'm notified I either won or lost the auction.
That's not always true. I sometimes have many copies of the same item and I will use this option then.
read later
When eBay places bids on my behalf they are acting as my bidding agent, in my opinion.
Once the shill bidder made his fraudulent bid, my agent -- acting prudently, would not bid again on that item. The sale and the pool of bidders and sellers in it are now tainted by fraud. In this particular case, my maximum bid is now public. In such circumstance a reasonable buying agent would not rebid at all on the item. Yet Ebay does, that is imprudent and is not only a practice that allows fraud -- it is a practise that REWARDS fraud.
Just a guess but they may be refering to auctions in the UK. I know some countries won't let you view the buyer's history.
Do NOT miss that that in this auction the was a clear pattern that drew the strongest of suspicion of fraud upon the seller himself. No one -- you included -- should buy from frauds!
Especially not on Ebay, where the item being bought is not present to be examined.
From purchases over the last two weeks I can say that Ebay US started last week only showing the bidder by number.
And for that reason, so is anyone who lists an item at less than they're willing to sell for. But listing at realistic prices just runs up the EBay fees because no one bids. EBay is not a place for the naive.
Only actual bids (not automatic bids generated up to a bidder's maximum) are shown. Automatic bids may be placed days or hours before a listing ends. Learn more about bidding.
Bidder Bid Amount Date of bid Bidding Details
Bidder 4 Feedback score is 10 to 49 US $255.04 Jan-28-07 06:54:40 PST View
Bidder 3 Feedback score is 10 to 49 US $250.04 Jan-27-07 15:55:11 PST View
Bidder 4 Feedback score is 10 to 49 US $240.00 Jan-28-07 06:47:17 PST View
Bidder 4 Feedback score is 10 to 49 US $235.00 Jan-28-07 06:46:09 PST View
Bidder 1 Feedback score is 100 to 499 US $230.00 Jan-25-07 22:14:14 PST View
Bidder 2 Feedback score is 100 to 499 US $220.00 Jan-26-07 20:05:14 PST View
If you and another bidder placed the same bid amount, the earlier bid takes priority.
Feedback Score: 47
Positive Feedback: 100%
Members who left a positive: 47
Members who left a negative: 0
All positive feedback received: 50
When I bid $5 and the bids go to $20 and than I get a second chance, I think it is shill bidding!
I only had one problem with buying a DVD on EBAY.
It would only play the first half of the movie before it bombed.
I contacted the seller and they shipped me a new one.
I asked what to do with the bad one.
They said "I believe you that it is bad, just toss it.
The new one worked fine and I left positive feedback.
Shill bidding is just as fair as sniping...IMHO.
eBay doesn't broker or bid for you. You are doing that.
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