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Wednesday, November 10, 2004

eBay learns a lesson
No matter what you might think of New York Attorney General Eliot Spitzer, he does get some things right --like eBay. I have long held that auctions are not buyer friendly and that eBay, in particular, plays fast and loose with its own rules. Here comes the proof: "Eight eBay sellers were ordered to pay nearly $90,000 in restitution and fines after admitting they bid up products online to inflate the prices."

According to eBay rules, that's illegal. But no one checks. If a bidder happens to realize it, and reports the possiblity to eBay, something might get done about it. Even now, the Attorney General's office admitted, "...the cases stemmed from specific complaints, but the office has not conducted a broad investigation of the online auction industry and doesn't know how widespread the practice of phony bidding is." O boy!
# Permalink Posted at 6:21 AM 7 comments Email this Link

Comments on this Item:

I think the title is a little misleading if Ebay itself was untouched.... more like "Ebay seller's who break the rules by bidding on their own auctions to inflate prices learn a lesson." I would think if Ebay were fined as well then perhaps that would give them an incentive to enforce the rule. As it currently stands, Ebay makes more money if people inflate prices because they take a % cut, giving them an anti-incentive to crack down on the 'illegal' practice.

# posted by Anonymous 6:47 AM

Without a doubt, but the fact that this has come to light at all has at least opened up the idea that it does happen --from a credible cource rather than from eBay users themselves who some tend to rank whistle blowers as whiners and complainers.

# posted by Bill 7:01 AM

Wow. So there is nothing better for the Attorney General of New York to do than monitor a few crappy eBay auctions? Of course someone can run up bids on an item - that's why there is a maximum bid option, and anyone who sets an auction to auto-bid up without it is an idiot, just like someone who sells a stock without a limit option on it is an idiot. Auctions are just like haggling - you figure out how much you are going to pay for an item, and if you can't get your price, you walk. Now, if someone is committing outright fraud - like auctioning illegal contraband or auctioning things they don't actually own to rip you off, then I am fine with the gov't prosecuting. But some idiot who paid too much for an item? Sorry, Let the Buyer Beware, and keep the gov't out of it.

# posted by Anonymous 8:15 AM

A "few," Todd? Do you have --any- idea how much money eBay and PayPal make each year on their auction and payment fees? It would boogle your mind.

Also, note from the story that the NYAG responded to complaints. I tend to think, however, that's a lot like roaches. If you see even two or three, you'd better believe there are thousands more.

# posted by Bill 1:36 PM

And it's not like that's the ONLY thing Mr Spitzer is working on.

# posted by Terry 8:20 PM

There's an awful lot of shady things going on at Ebay. I don't even bother to sell anymore because of the problems.

# posted by Anonymous 7:18 PM

Ebay is full of shillers !!! Ebay doesnt care !! the more the item goes for the more money Ebay makes....I applaud Mr. Spitzer for going after fraudulent sellers...Too bad that he doesnt have enough time to go after all of them....maybe someday soon Ebay will be investigated on a higher level and permanently shut down. And please dont give me the BUYER BEWARE statement....there are alot of honest people who have no idea that this type of thing is going on ....and also dont know how to navigate ebay to check on bid history or know that Ebay turns a blind eye to complaints regarding shilling. Look at the person who just sold a Grilled cheese Sandwich with the face of the virgin mary on it !! What a complete hoax and they let people like this sell on their site....Ebay is laughing all the way to the bank .....

# posted by Anonymous 4:41 AM

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