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Revealed: how eBay sellers fix auctions
Times Online UK ^ | Jan.28, 2007

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.”


TOPICS: News/Current Events
KEYWORDS: auctioneer; bidding; charges; ebay; handling; iceberg; marketplatform; shill; shillbidding; shipping
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1 posted on 01/28/2007 6:38:41 AM PST by COUNTrecount
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To: COUNTrecount
One way to tell one way they might use shills is after the bidding is to offer you the item for your highest bid when it did not win!

I check the "buy it now" option.
2 posted on 01/28/2007 6:42:40 AM PST by HuntsvilleTxVeteran ("Remember the Alamo, Goliad and WACO, It is Time for a new San Jacinto")
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To: COUNTrecount
They just noticed this?
Shill bidding has been going on since ebay got started.
3 posted on 01/28/2007 6:43:09 AM PST by xcamel (Press to Test, Release to Detonate)
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To: HuntsvilleTxVeteran

And "Froogle" the new items. Most of the time you can find them cheaper.


4 posted on 01/28/2007 6:45:34 AM PST by Mojave
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To: HuntsvilleTxVeteran

When I know a user is shill bidding, I just don't bid on his auctions.

This is a problem that can police itself easily.

Never put in a maximum bid you aren't willing to pay for that item.

If you don't like how the transaction goes, tell that in the feedback.


5 posted on 01/28/2007 6:46:30 AM PST by Calpernia (Breederville.com)
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To: COUNTrecount



Iceberg.


I don't trust Ebay, and won't use it; it's a carney's dream.


6 posted on 01/28/2007 6:47:11 AM PST by brityank (The more I learn about the Constitution, the more I realise this Government is UNconstitutional.)
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To: xcamel

>>Shill bidding has been going on since ebay got started.

Actually, since auctions got started (live and virtual).


7 posted on 01/28/2007 6:47:13 AM PST by Calpernia (Breederville.com)
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To: COUNTrecount

I've shopped on Ebay for years and am a very savy shopper. I know the value of things and what the maximum is that I'm willing to pay for an item.

I've gotten some terrific buys on Ebay and have found items that are either no longer available or can't find locally. I've decorated most of my home (knicknacks, books, hard to find CD's) with stuff that I've purchased from them.

Have I gotten ripped off there? Yes, a couple of times and fortunately it wasn't for more a than a few dollars.

Buyers simply have to be careful and not go beyond what they are willing and able to pay.


8 posted on 01/28/2007 6:47:43 AM PST by proudofthesouth (Mao said that power comes at the point of a rifle; I say FREEDOM does.)
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To: xcamel

I thought the seller could place a minimum bid or a reserve on an item.


9 posted on 01/28/2007 6:48:56 AM PST by Louis Foxwell (here come I, gravitas in tow.)
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To: brityank

I've had problems twice on eBay since I've been a member (7 years).

Between the eBay reporting system, PayPal, Square Trade and the Post Master General, I've had no problems resolving them.


10 posted on 01/28/2007 6:49:40 AM PST by Calpernia (Breederville.com)
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To: xcamel

Things must be pretty quiet in the UK if they consider this a scandal.


11 posted on 01/28/2007 6:49:48 AM PST by Richard Kimball
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To: xcamel

I'm sorry, but you can't stop shill bidding. Any seller with any brains at all can do it without even getting noticed. Plus it is very hard to prove. This is yet another thing that makes for a good story, but would be a waste of law enforcement effort to actually investigate.


12 posted on 01/28/2007 6:50:16 AM PST by Comstock1 (If it's a miracle, Colour Sergeant, it's a short chamber Boxer Henry point 45 caliber miracle.)
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To: proudofthesouth

bump


13 posted on 01/28/2007 6:50:28 AM PST by Calpernia (Breederville.com)
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To: Comstock1

caveat emptor.


14 posted on 01/28/2007 6:52:11 AM PST by xcamel (Press to Test, Release to Detonate)
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To: Calpernia

Just a casual user of e-Bay - but we have had problems - misrepresented articles, seller backing out after a successful low bid, etc. - about 40% of the time. Have had a number of friends who rave about their 'buys' and know one couple that made a pretty respectable 'living' (@100K/year) selling on eBay stuff they picked up at yard sales.


15 posted on 01/28/2007 6:53:55 AM PST by NHResident
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To: Amos the Prophet
They can, but if they put a minimum that's nearly retail, there's a good chance no one will bid on it. OTOH, if they get a guy hooked and he thinks he's bidding against someone else, he's more likely to bid up. It also looks like an item is more valuable if there are ten bids on it instead of none.

I know that on camera equipment, particularly stuff like the Canon professional quality gear, I never even check eBay. B&H sells it new for less than what some morons are willing to pay for used equipment.

16 posted on 01/28/2007 6:56:40 AM PST by Richard Kimball
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To: xcamel

Caveat emptor applies more to stores. eBay has a large selling population of garage sale type environment.


17 posted on 01/28/2007 6:57:04 AM PST by Calpernia (Breederville.com)
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To: COUNTrecount

The blame should not be on Ebay. The blame is on the abusers.


18 posted on 01/28/2007 6:57:07 AM PST by Leftism is Mentally Deranged
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To: NHResident

The trick is knowing exactly what you want, and exactly what you're willing to pay, and always be willing to walk away.


19 posted on 01/28/2007 6:57:46 AM PST by xcamel (Press to Test, Release to Detonate)
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To: NHResident

I would say the experience is the equivalent of going to market kiosks.

And who doesn't love a flea market?


20 posted on 01/28/2007 6:58:25 AM PST by Calpernia (Breederville.com)
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