Lerach Coughlin Stoia Geller Rudman & Robbins LLP filed a class action suit in California Superior Court in Santa Clara on February 18 against eBay. According to the law firm, "the Internet auction company is illegally using "shill" bidding against its own customers to force up prices, and thus increase its fees and finance service charges, a consumer suit charges."

The way eBay has set up bidding policies can be confusing. On eBay's help files, it explains how in some cases, you can bid against yourself:

"In most cases you, as a bidder, cannot bid against yourself. However, there are a few exceptions where this can occur,..." (http://pages.ebay.com/help/buy/bidding_change_bid.html)

Interestingly, in looking at three books about eBay, including eBay's own guide, only one appeared to explain this phenomenon: David D. Busch's book, "The eBay Myth-Buster" (Wiley 2004).

The law firm said clients who purchased goods or services through eBay between February 16, 2001 and today, and are listed as both of the last two bidders in the auction may qualify to be part of this lawsuit. Interested parties may contact the eBay Case Administrator at (415) 288-4545, or via e-mail at ebaycase@lerachlaw.com.

The full complaint can be read online in a PDF file.

http://www.lerachlaw.com/cases/ebay/complaint.pdf