Man fined over fake eBay auctions

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Man fined over fake eBay auctions

Page last updated at 11:35 GMT, Monday, 5 July 2010 12:35 UK

eBay headquarters in San Francisco Paul Barrett sold and bid for his own items under different screen names

A man has been fined £3,000 and ordered to carry out 250 hours community service after fixing an online auction on eBay.

Paul Barrett, 39 and from County Durham, became the first person to be convicted of shill bidding in April.

That's when online sellers bid on their own items to artificially bump up the price or get friends and family to do it for them.

Barrett was sentenced after admitting 10 counts at Bradford Crown Court.

The minibus hire firm boss pleaded guilty after an investigation by North Yorkshire Trading Standards found he had bid against himself on several items, including a pie and pasty warmer on sale for £127.

Mr Barrett told the court that he didn't realise the practice was against the law.

BBC News: How do you catch online auction cheats?

‘Happens regularly’

Critics of eBay say shill bidding is a widespread problem on the site.

eBay spokesperson Vanessa Canzenni denies that not enough is being done to prevent it.

She said: "We spend £6 million every year to try and stop shill bidding from happening.

Paul Barrett Paul Barrett claimed he was not aware he was acting illegally by shill bidding

"The fact that we're the number one e-commerce site proves that customers can buy and sell with confidence."

She also claims eBay is able to spot when shill bidding is happening, although wouldn't provide any details about how that's possible.

She added: "We have leading technology that enables us to detect when people are trying to do this."

However, Jo Boutflower, the trading standards officer who brought the case against Mr Barrett, does admit it's very difficult to prove shill bidding.

She said: "We have to have sufficient evidence or suspicion of an offence before we can exercise powers to get eBay records for example."

Regular eBay user Rezza Faizee, 27 and from Workington in Cumbria, reckons it's a massive problem and something that has happened to him when he was trying to buy a mobile phone.

"It's definitely something that happens regularly," he admitted.

"I've had friends, family, and the same thing's happened to them.

"I honestly don't know what you can do to tackle the problem, I honestly don't."

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13 Comments

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Philip CohenJuly 6th, 2010 at 3:38 am

eBay shill bidder gets £5,000 fine

http://www.theregister.co.uk/2010/07/05/ebay_shill/

eBay today welcomed the sentence.

“We are extremely pleased with Paul Barrett’s sentence,” said [eBay] spokeswoman Vanessa Canzini.

“While this case was not solely about shill bidding, we hope that it highlights how seriously we consider the practice of artificially increasing prices. This practice is not only prohibited on eBay as it damages the integrity and fairness of trading on our site, but it is also illegal.

“We continue to invest over £6 million every year in industry leading technology to proactively detect shill bidding. We will always work closely with law enforcement agencies to ensure that, on the rare occasion someone attempts to follow in Barrett’s footsteps, they will be stopped and will face the consequences.”

What? eBay still spinning this “£6 million” nonsense when it is so easily demonstrable that shill bidding is rampant on eBay nominal-start auctions and that eBay does absolutely nothing proactively, and very little reactively, about such criminal fraud.

In fact, by their introduction of anonymous masking of bidder IDs eBay effectively—and knowingly—do criminally facilitate such shill bidding fraud by unscrupulous sellers on unsuspecting buyers, just so that they (eBay) can improve their FVF from such thereby corrupted auctions. Indeed, eBay’s anonymous masking of bidder IDs serves none other than this criminal purpose.

Don’t you just love Vanessa Cranzini’s statement “on the rare occasion someone attempts to follow in Barrett’s footsteps”. One must have to sign away all their ethical sensibilities—assuming they had any in the first place—when they enter the employ of unscrupulous commercial entities such as eBay.

More at:
http://news.bbc.co.uk/2/hi/uk_news/england/wear/10510086.stm

‘Sentencing the 39-year-old, Judge Peter Benson, said: “Had you had previous convictions for dishonesty, the result would have been a custodial sentence.

‘“This sort of conduct strikes at the heart of that trust which is vital if this very, very useful commercial medium is to continue to operate successfully.”

Oh, dear me, shill bidding, who would have thought …

What a shame it is that Judge Benson did not sense the need to look at and comment upon eBay’s clunky auction system mechanism that—eBay well knows—so obviously facilitates and thereby encourages this form of criminal activity.

‘A spokeswoman for eBay welcomed the sentence.

‘Vanessa Canzini, eBay’s head of corporate communications [aka, Dept of Spin], said: “This practice is not only prohibited on eBay as it damages the integrity and fairness of trading on our site, but it is also illegal.”’

Have you no shame Vanessa; we all know that eBay couldn’t care any less about shill bidding fraud—it improves eBay’s FVFs!

We can only hope that one day some competent consumer authority will shine a bright light under this slimy rock.

And, the proof of the pudding can be found at
http://www.auctionbytes.com/forum/phpBB/viewtopic.php?p=6502877

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