Now that we have clarified the relevant auction 'lingo' you can appreciate why most condemn the act of Shill Bidding. It is regarded by most online auction website owners as a deceitful and underhanded tactic used mostly by conniving scam artists. Each auction website will have their own set of terms and conditions, however most reputable online auction websites have a strict policy against this sort of behaviour and would usually blacklist any seller from using the site in future. In some countries, shill bidders have been criminally prosecuted for Shill Bidding where such prosecutions have resulted in both misdemeanor and felony convictions and large penalties including fines and restitution of damages.

Online marketplaces rely heavily on the integrity and reputation that is reflected in its community in order to become and remain successful. Shill Bidding can destroy the credibility of such marketplaces very quickly. Not only does it damage the trustworthiness of the website itself, it completely distorts the bidding process and hurts the buyer.

Online auctions are certainly not doom and gloom. In fact, one of the beauties of selling products in an auction is that you allow the market to determine the true value of a product, based on the demand and desirability of that particular item, rather than dictating to the marketplace what the price should be. Very often this price exceeds the seller's expectations - as what the seller may have regarded as trash may very well be considered a treasure to the buyer, who will quite happily pay an above market price for the simple purpose of becoming the new owner of that rare find.

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