My name is Steve Oglethorpe. I'm a Senior Manager with eBay's Global Marketplace Policy team. I’m joined today by Robert Tomkinson (Senior Manager for Marketplace Efficiency), Ben Hanna (Senior Category Manager for Business and Industrial), Ann Poletti (Director, Jewelry & Watches) and several other eBay employees who want to help you understand eBay's Shill Bidding policy.

We'll start with some material to "cover the basics" regarding eBay's Shill Bidding policy.

Feel free to ask your questions on-line at any time. We'll respond to them as soon as we cover this introductory material.

Why does Shill Bidding Matter?

Shill Bidding is harmful to buyers, because they end up paying artificially inflated prices for items. Shill Bidding indirectly harms other sellers by making it appear that there is a stronger than actual demand for one seller's product, thereby unfairly attracting bidders to his auction and away from other sellers' auctions. Shill Bidding harms the entire community by undermining trust in the marketplace. To ensure buyers’ and sellers’ trust in eBay’s marketplace is appropriately placed, Shill Bidding is not permitted on eBay.

What kinds of things is eBay doing to help members understand and comply with this policy?

First, eBay recently developed a very clear, simple, and easy-to-read version of our existing Shill Bidding policy. You can view this policy at:

Link

Second, eBay is reaching out to the community to make sure our members are aware of and understand this simple policy. This on-line workshop is one example of the type of educational outreach eBay is doing to help members understand, and avoid violating, the policy.

Third, eBay will be launching an on-line Shill Tutorial in September. The tutorial is short and simple, yet covers key information on the policy. The Tutorial will be available to all members as an educational tool. It will also be 'required reading' for members who are warned, or temporarily suspended, for violating the Shill Bidding policy.

What happens if a member does violate the Shill Bidding policy?

When eBay becomes aware of possible shill bidding, we investigate the bidding and if we find that a seller has violated the policy, we take appropriate action. That can include actions such as cancelling listings and suspending accounts -- even for a first offense.

Shill Bidding on the internet in the United States and many other countries is illegal, and law enforcement agencies have recently prosecuted individuals on both misdemeanor and felony charges. eBay cooperates with law enforcement agencies in shill bidding and other fraud investigations

Can my family, roommates or employees bid on my eBay auctions?

Because family members, roommates and employees of sellers have a level of access to item information which is not available to the general Community, they are not permitted to bid on items offered by the seller -- even if their sole intent is to purchase the item. Family members, roommates or employees may purchase items from a seller without violating this policy simply by using purchase options -- such as Buy It Now -- which do not involve bidding.

eBay strongly encourages sellers with employees to ensure that their employees are aware of this policy and the possible consequences of violation.

Here are a few simple tips to help you avoid violating the Shill Bidding policy:

First… read the Shill Bidding Policy Link

Next, if your family or roommates are active eBay members, make sure both you and they understand the Shill Bidding policy as it pertains to family and roommate bidding. Family members and roommates can buy and sell from each other on eBay using Buy It Now or other fixed-price formats… but they cannot place bids on each others auction-style listings without violating the Shill Bidding policy.

Third… if you have employees, make sure they all understand the Shill Bidding policy. Just as for family and roommates, employees of a seller can buy from that seller using Buy It Now or other fixed-price formats… but they cannot place bids on the seller's auction-style listings without violating the Shill Bidding policy. As an employer, you may want to have your employees formally document that they understand and agree to the policy. You can also consider such practical measures as placing your employee's eBay ID's on your "Blocked Bidder" list to prevent evey accidential violations.

Last… don't bid on your own auctions, or have others bid on your auctions for the purpose of manipulating price or apparent desirability. This policy really is that simple.