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Doesn't the law state an auctioneer has to announce if the consignee is going to bid on his own items? Having a friend bid on a consignees item is called shill bidding.

It happens and you just have to remember when you go to an auction whether it's online or in person you have an idea of what you want to give for an item and bid to that number.

This type of stuff has been going on for years! I personally don't like it but nothing anyone can do about it.

John...not being an auctioneer, I'm not sure if that's a law or not, but I'm betting it'd pretty hard to enforce or prove, unless there was video evidence. As far as shill bidding, that's correct, but I believe that's what it's called when the intention is simply to push the price higher, without the intent to buy back.

You are right that this stuff has been going on for years, and now with all of the new forms of online bidding, there's NO WAY you can completely keep this from happening. Heck, a guy could sign up for online bidding and pre-bid their items or even better yet, they could sit there with an iphone or blackberry and bid away. Like you said, as a legit buyer (which I attended probaby 10x as many auctions as a buyer than as a promoter) all you can do is know what YOUR limit is and quit when it surpasses that.

THE AUCTION HAS NO WAY TO KNOW WHO ALL THE BIDDERS ARE.THEY CAN HAVE A RESERVE AUCTION.JUST KNOW YOUR NUMBERS AND BE HAPPY IF YOU WIN AT THAT AMOUNT OR LESS!

Well said Mark

The first IG auction I went to 10 yrs or so I sat beside a dealer who had several things in the auction and he bought some of the items back because they did not bring enough. When I bought my Beeline globe in Columbus several years ago I had a friend sitting in the back of the auction watching for me and he told me the owner of the globe had bid on it at least once. It was alright because it was still less than I was willing to pay for it although it cost me at least several hundred dollars more. It may not be intentional but the auctioneer makes more money.

People attend a "NO RESERVE" auction for the purpose of possibly getting a deal, If somebody consigns a $20,000 globe to a "NO RESERVE" auction, they know very well that it will sell for the final price regardless.
If they are worried about getting a certain amount of that globe, then put it in a "RESERVE " auction, where they are not screwing with the public.
All I know is when I go to bed at night I can sleep well.

Iowa Gas does advertise and it's in their policy description that they do allow buybacks. It has always been that way. Most won't agree with the policy but they are very upfront, out in the open regarding the buyback policy. I think it is more tolerable to be honest about the situation.

on the other end of the spectrum, i have heard & seen high end buyers collude together, one of them gets his choice at the auction, the other gets next choice & so on,......this is so they don't run each other up on the items......this is illegal also & terrible for the consignor....

You know the old saying... you have no friends during an auction. LOL

I don't mind a friend bidding on an item i want. I figure who ever wants to pay more will win it.

Remember guys when you go to an auction you have to know what you want to pay for an item and if you get it cheaper great... if you don't get it... no big deal.

Put me in the minority catagory with KZ;;;;;;;;;;;;;;;;;;;Ron

KZ100....I understand what you are saying, and in a perfect world that's they way it would be. I hate to be the one that shatters your confidence, but believe me, there are items at EVERY AUCTION, regardless of how it's advertised (Reserve or Absolute), that eventually end up back in the same collection they came from. I would never in a million years, embarrass anybody or throw anybody under the bus, but I could site specific examples at just about ALL the auctions I've ever attended. The crazy thing is, most of the regular consignors to the big auctions are also some of the biggest bidders at those auctions, and I don't mean on their stuff, I mean, they are big-time buyers & dealers who throw 20-30 items in a sale just to make it interesting or to cover trip expenses.

Along the lines of what roadrelics is saying, I've seen that many times before. I've also seen the hobby's "power-brokers" letting it be known that they doubt a certain items' authenticity JUST to throw the other bidders off the trail....then they end up purchasing it over the phone OR web and WHAM! it's the next big $20,000 discovery. Also...have you ever wondered, when you are at a sale, and there are supposedly 4 or 5 "phone bidders" all bidding feverishly against the crowd...how do you do you know there's anybody on the line at all? How do you know those 4 or 5 "phone bidders" are simply a safeguard so that top-end item will get the necessary action? What if there's ONE guy who called in a $20,000 bid or he's there and he LET IT BE KNOWN that he will go $20,000 and the crowd doesn't have the stomach to drive him to $20,000....I'm just saying, 99% of the items you see come across the block at any big auction are changing hands the right way, but all I'm saying is, you cannot say definitively that you know for fact there isn't at least a little monkey-business going whether the auctioneer knows about it or not. Like I said....at a dead person's estate sale, that's one thing, but a consignment auction is another. There are just far too many ways to get your stuff back with NOBODY knowing but you....all I was pointing out was, if that person is being penalized 20% for doing it, then you can better bet it's happening on no more than 1 in a 100 lots.

This is an interesting topic. Wouldnt it be better for all concerned to allow the seller to bid on his own items and be upfront about it? The auctioneer could say "got $1500 from the seller, do I hear $1600? That would at least lessen shill bids, and everyone could know the seller is bidding up his item. People could then decide if they want to bid higher, or essentially "punish" the seller by not bidding. I know it wouldnt eliminate the shenanagians, but think it would help and be fairer.
John

John....interesting idea, but again, a seller can easily get their item back without anybody knowing....their punishment is having to add another 20% to the the item they already own & paid for. Still in all, if you go to an auction with 500 lots, I assure, at least 495 of them are going to new homes.

Auctions regulated under Uniform Commercial Code (UCC)laws. I believe enforceable in 49 states. Collusion and shill bidding always illegal, owner bidding on own merchandise not allowed unless announced prior by auctioneer.

I dont believe its right either. If you put something in an auction and it sales for less well thats just what happens. Case in point I put a set of shakers on ebay last year, and on most days these shakers would bring between 80 and 120 dollars. Mine sold for 25. I know thats not a lot of money, but it would not have been right for me to have someone run them up. You win some you lose some. just my opinion. I do have a question dont you have the right to ask who you are bidding against? I know around here there is one auctioneer who will run you up against yourself. So when i go to his auctions i always ask who am i bidding against.