Be careful what you bid for!
An eBay seller is facing a fine of up to £50,000 after admitting to ten offences under the Consumer Protection from Unfair Trading Regulations 2008 and the Business Protection from Misleading Marketing Regulations 2008.
The trader in question admitted using a separate eBay account to bid on his own items for the purpose of pushing up the price of the goods listed on his site (a practice known as “shill bidding”). The trader also admitted to leaving positive feedback on his eBay site with the aim of improving his reputation as a good seller on the site.
The Consumer Protection from Unfair Trading Regulations 2008 were brought into force for the purpose of implementing the EC Unfair Commercial Practices Directive in the UK and repealed the Trade Description Act 1986. These Regulations introduced a general prohibition on business treating consumers unfairly and requires them to not mislead consumers through acts or omissions or subject consumers to aggressive commercial practices.
The Business Protection from Misleading Marketing Regulations 2008 came into force in May 2008 and were primarily introduced to protect UK traders from dishonest businesses and to ensure that the protection offered to businesses was not reduced following the repeal of the Trade Descriptions Act 1986. Together with other matters, these Regulations provide for a general prohibition on misleading advertising to business.
Charlotte Baker
Associate, Company Commercial
July 2010
