eBay announced that a seller's family members, roommates, and employees are not permitted to bid on items offered by the seller, even if their sole intent is to purchase the item. According to eBay's announcement, shill bidding is "bidding that artificially increases an item's price or apparent desirability. It includes bidding by individuals with a level of access to information about the seller's item not available to the general Community. Shill Bidding unfairly manipulates item prices and undermines trust in the marketplace, and is prohibited on eBay."
eBay said it would ban a seller's family, roommates and employees from bidding because they "have a level of access to information about the seller's items which is not available to the general Community." Sellers who violate the shill bidding policy face listing cancellation, loss of eBay fees on cancelled listings, loss of PowerSeller status, account suspension and referral to law enforcement. eBay said it would hold a workshop on its shill bidding policy on August 16.
http://www2.ebay.com/aw/core/200507181714112.html
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