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 UKs 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 worlds 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 eBays 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, eBays 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 eBays 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 Christs 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). Dont call it shill bidding. Then I wont be accused of shill bidding. Yes. I mean Ive got people.
Ive 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 . . . youre a multi- millionaire. You buy a hundred grands 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 whos 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.
You always need to look at total price....then decide if it's a good deal or not.
Well...I guess it depends on the value of what you are bidding on.
Maybe I wasn't clear in my post.
My apologies....
Actually...you are incorrect.
The following is from eBAY:
Second Chance Offer
A seller can make an offer to a non-winning bidder when either the winning bidder has failed to pay for an item or the seller has a duplicate of the item.
I did that once-dropped the item as I was getting ready to pack it. It was damaged, but not fatally, so I offered it to the buyer at a much reduced price or a full refund. He took the reduced price and gave me a positive. I make it a policy to offer a money back guarantee on everything I sell. I've only had to give about 4 refunds, but I'm convinced the standing offer gets me more bids. You have to wonder about the "as is-no refunds" sellers. I can't think of a better way to chase away bidders!
My best eBay experience was when I bought "The Story of Star Wars" on 8-track tape. It's basically an abridged version of the movie, and I almost wore the grooves of my LP version when I was a kid. It was in its original shrink-wrap, going for about five bucks, and I figured any Star Wars collectible had to be worth at least that.
When I opened the package, the 8-track inside was the "Close Encounters" soundtrack. When I e-mailed the sender, he said "oops. Keep it, and I'll send the right one out." It arrived in a few days. So I got two primo '70s artifacts for the price of one.
they can but it greatly increases their ebay fees to do so in many cases.
yeah shipping as a profit-center for sellers is a big issue with some sellers, in cases often as absurd as you note.
No apology, no comment. Nothing?
LOL!
Thank you for writing eBay in regard to a policy protecting the identity of the bidders on an item.
I am sorry to learn about the issue and would like to apologize for the late response. eBay welcomes comments from members of our Community, and we appreciate your suggestions. This type of communication helps us improve our services and meet your needs.
However, our company policy doesn't allow us to accept suggestions unless we specifically request them. We hope that you understand that this policy can avoid future misunderstandings if new products, services, and features developed internally by eBay employees seem similar or even identical to a member's idea.
"In order for us to dedicate resources to preventing this type of situation in a timely manner, reports directed to this area that do not relate to current listings that may be fraudulent (including reports of listing violations and reports about items that may be prohibited) will not be forwarded to another department or answered."
In other words, they won't act against a crooked dealer unless you happen to catch them while a fraudulent auction is in progress.
I decide beforehand who much I'm willing to spend on an item. Subtract shipping and there's my maximum bid. If a dishonest seller wants to shill the price up beyond that, he'll lose the sale and pay eBay a commission on the money he shifted from his left pocket to his right.
I rarely use eBay, but it's the only way to go for me.
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