eBay conviction for ‘shill bidding’

Users of online auctioning giant eBay have been told to watch their actions when selling items or risk substantial fines and criminal convictions for breaching consumer laws.

The warning follows the criminal punishment and possible £50,000 fine placed on regular eBay seller, Paul Barrett, after he was found to be "shill bidding".

Shill bidding, whereby sellers bid on their own items through fictitious eBay accounts to drive up the sale price, breaches consumer protection laws, although many are unaware of the practice's illegal nature.

The 39-year-old pleaded guilty to 10 offences at Skipton Magistrates' Court following extensive investigation by North Yorkshire Trading Standards officers, who responded to complaints from Mr Barrett's customers after he mis-sold goods.

Breaches of The Business Protection from Misleading Marketing Regulations 2008 and the Consumer Protection from Unfair Trading Regulations 2008 each carry a maximum fine of £5,000.

Mr Barrett will return to court in early May to have his sentence determined.

eBay said the case, the first prosecution of its kind in the UK, was a clear warning against the practice of shill bidding to bump up prices and fellow users, unaware of the legal dangers, should quickly alter their habits.

"We hope this case is a wake-up call to people who trade on eBay, or other auction sites," added Jo Boutflower of North Yorkshire Trading Standards. "Some people do this either themselves or by getting friends and family to bid on their items. They may not think they're doing anything wrong but actually they are breaking the law."