posted on May 21, 2001 07:01:50 AM
Can you tell me if its legal for an on line auction to change the auction closing time 30 seconds before it is to close? I also need to know if its legal for the Owner of an on line auction to bid on items to run the price up? This on line auction company is in michigan.
posted on May 21, 2001 08:49:23 AM
Speaking of auction laws in general, bidding on one's own merchandise is illegal only if it isn't disclosed to the potential bidders. IOW, if an auctioneer announces prior to the auction that the owner will be bidding on his/her merchandise, the practice is not unlawful.
On ebay, all shilling is "illegal" because it violates ebay's TOS, which specifically prohibit a seller from bidding on his own auctions.
The answer to your question lies in whether or not the auction site forbids shilling, and if not, whether the seller disclosed his intentions in his listing.
posted on May 21, 2001 09:01:43 AM
I think he's asking about online auctions, not live auctions. But you're right, in a live auction, the auctioneer can have someone bid for him. It's not always disclosed where I live, but it's not hard to miss either. I've never seen or heard of an owner bidding on his own merchandise though in a live auction. I know I wouldn't bid if this were the case.
posted on May 21, 2001 09:12:51 AMmtnmama, while not what I would call a frequent occurrence, bidding on one's own merchandise happens fairly often at on-site estate auctions. Family members at such auctions have often been known to drive prices way beyond reasonable levels. Of course, this is always disclosed by reputable auctioneers prior to the start of the auction, as not only are the ensuing bidding wars obvious to the casual observer, but failure to do so can result in the loss of his/her license.
I believe the original poster was inquiring about auction laws in general, and how they pertain to online auction sites.
The practice of surreptitiously bidding on one's own merchandise is common (and illegal), both online and off.
