Sunday, June 10, 2007

eBay seller fined $400,000 for price manipulation

Its been a while since I did anything on eBay, but even a few years ago it was plain that some sellers were shill bidding and complaints were falling on deaf ears at eBay.

There's no real motivation for eBay to crack down on shill bidding -- it drives up their commission revenues.

Apparently pressure from the NY AG's office and the magnitude of this fraud was enough to finally get eBay's attention...it certainly wasn't complaints from ordinary users.

eBay is an evil company with the ethics of a $5 crack whore.

PC World
NEW YORK (Reuters) - A jewelry company on eBay Inc. that allegedly bid on its own auctions to illegally drive up prices by as much as 20 percent agreed to pay $400,000 in restitution and penalties, the New York state attorney general's office said on Saturday[...]
Much more info here at FireMeg.com

3 comments:

FireMeg said...

http://www.firemeg.com/blog.html

Congrats. You are the first article that I've read so far on this story, other than my own, that mentions that eBay benefits from shill bidders.

eBay made a LOT of money off that one seller. And now it seems they have thrown the seller under the bus...the bus to eBay Live. Should be a hoot to hear the execs talk this up and try to make it sound like they were being tough on fraud.

The Mayor said...

Sounds like a great company to invest in, with good returns for shareholders dollars. Shareholders like you and me, Mister Purple Avenger. And the largest group of investors in shares, in American Capitalism, are the pension funds of unionized workers, Mister Purple Avenger.

I, Sargon the Magnificent, wrote this

Purple Avenger said...

The problem with investing in eBay, which otherwise might be a good idea for the reasons you list, is that Meg Whitman is moron that runs the business using some very uncapitalistic tendencies and a very incompetent IT staff.

I think eBay is a company in decline right now.