SHILL bidding started making headlines after there were reports that eBay restricted their biggest trading card seller from the website.
Those who commit shill bidding could be arrested on federal charges under 18 U.S. Code Section 1343 for wire fraud.
What is shill bidding?
Shill bidding is known as a form of auction fraud.
eBay defines shill bidding as, "when someone bids on an item to artificially increase its price, desirability, or search standing."
Shill bidding creates an unfair advantage and causes other bidders outside of the scam to pay more than they should for an item.
What company did eBay restrict due to shill bidding?
On Tuesday, August 17, 2021, eBay sent out a mass email that stated it restricted selling privileges of its largest trading card seller, PWCC, citing that they violated their shill bidding policies.
“Recently, it was determined that individuals associated with a trading card seller, PWCC, have engaged in “shill bidding,” which is prohibited on eBay,” the statement read.
“As a result, eBay has restricted PWCC’s selling privileges and listings, effective today. eBay’s policies and standards were designed to ensure a trusted marketplace where our community can transact with confidence. If we determine that a buyer or seller is not acting in good faith, eBay takes this seriously and takes action.”
The company has since issued a response to their suspension, saying that the executives were "shocked" to hear the accusations and said they will conduct an internal investigation.
PWCC went on to note that their employees, “do not have access to eBay’s bidding records or information.”
PWCC said in their note that they will be moving forward onto a new plaform. They cite that this new platform will launch on their website shortly.
They state that they remain excited about their future and confident about their marketplaces coming to this new platform.
What is PWCC?
Founded in 1998, PWCC is known as the largest and most complete trading card marketplace in the world.
more from ebay
According to their website, PWCC, "offers buyers and sellers a superior marketplace, principled in reduced transaction costs, faster turn- times, increased liquidity, and greater transparency."
The company famously sold a 1952 Mickey Mantle Rookie card that was graded PSA 8 for $486,000.
The Oregon-based company also provides a 0% sales tax rate on sales and purchases as the state is one of the few that don't require sales tax.
