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Started By
Message
Is shill bidding illegal in Louisiana?
Posted on 7/16/16 at 8:50 pm
Posted on 7/16/16 at 8:50 pm
I have been going to auctions put on by a local auction company for a few years now and have noticed many people buying their own items back. At the last auction, I even saw the auction company allow a couple to send a truck back through twice in the same auction because they bought it back the first time because they got greedy with their shill bidding.
I have confirmed with a few people that they have bought their own items back and have noticed a few items that pop up at every auction because these people can't accept it isn't worth what they think and bid it up past what people are willing to bid.
Seems like the auction company doesn't care because most of these people are regulars from what I can tell, some are friends with the auctioneer, some even work for the auction company for their bigger auctions, and the auction company is still getting their commission either way. Of course the higher it gets bid up, the bigger their commission is.
Seems like a good way to open up to a class action allowing this to happen if it is illegal. It would be hard to say they don't know this is going on based on the same exact items being at every single auction by the same sellers. The auction company would have to know when doing the buy/sell paperwork too as it's all tracked.
They have an auction coming up that I am considering skipping because they allow this but if it's legal I guess I can't fault them. Just because it may be legal, doesn't mean it's ethical, though.
I have confirmed with a few people that they have bought their own items back and have noticed a few items that pop up at every auction because these people can't accept it isn't worth what they think and bid it up past what people are willing to bid.
Seems like the auction company doesn't care because most of these people are regulars from what I can tell, some are friends with the auctioneer, some even work for the auction company for their bigger auctions, and the auction company is still getting their commission either way. Of course the higher it gets bid up, the bigger their commission is.
Seems like a good way to open up to a class action allowing this to happen if it is illegal. It would be hard to say they don't know this is going on based on the same exact items being at every single auction by the same sellers. The auction company would have to know when doing the buy/sell paperwork too as it's all tracked.
They have an auction coming up that I am considering skipping because they allow this but if it's legal I guess I can't fault them. Just because it may be legal, doesn't mean it's ethical, though.
13
Posted on 7/16/16 at 8:52 pm to stout
Never knew an owner could bid on their own item
Posted on 7/16/16 at 8:53 pm to stout
Posted on 7/16/16 at 8:54 pm to upgrayedd
One guy flat out told me he did.
Convo went like this:
Me: "You got a good deal on the UTV"
Him: "Oh, that's mine. I bought it back because I couldn't let it go that cheap"
Me: "You can do that?"
Him: "They didn't say I couldn't"
That exact UTV was at the next auction a few months later.
Convo went like this:
Me: "You got a good deal on the UTV"
Him: "Oh, that's mine. I bought it back because I couldn't let it go that cheap"
Me: "You can do that?"
Him: "They didn't say I couldn't"
That exact UTV was at the next auction a few months later.
Posted on 7/16/16 at 8:55 pm to OweO
Unless I am misunderstanding that link, that is just for the auctioneers themselves.
I want to know about auctioneers letting people put their stuff in on consignment and bidding on it.
I want to know about auctioneers letting people put their stuff in on consignment and bidding on it.
This post was edited on 7/16/16 at 8:57 pm
Posted on 7/16/16 at 8:57 pm to stout
Yeah, it's stupid. I go to car auctions (dealers only) and they just have a right to refuse the highest bid.
You must be going to "absolute auctions" where there is no reserve price. I'd never sell an auto at an absolute auction.
You must be going to "absolute auctions" where there is no reserve price. I'd never sell an auto at an absolute auction.
Posted on 7/16/16 at 8:58 pm to stout
quote:
One guy flat out told me he did.
Convo went like this:
Me: "You got a good deal on the UTV"
Him: "Oh, that's mine. I bought it back because I couldn't let it go that cheap"
Me: "You can do that?"
Him: "They didn't say I couldn't"
That exact UTV was at the next auction a few months
That's like those pricks that pick their own gift at the white elephant Christmas party.
Posted on 7/16/16 at 8:58 pm to stout
« Jindal aide moves to DCFS as advocate/lobbyist; could be facing problems if Ethics Board had any enforcement teethFormer Auctioneer Board member provides more insider peeks at board turf protection through secrecy and racism »
Former fraud investigator joins LouisianaVoice with rare insider’s closeup look at State Auctioneer Licensing Board
March 18, 2014 by tomaswell
Robert Burns of Baton Rouge, a former fraud investigator, has agreed to join LouisianaVoice as an underpaid (read: gratis) researcher and contributing writer. His initial series of stories will chronicle his experiences as a member of the Louisiana Auctioneer Licensing Board.
—Tom Aswell
By Robert Burns
LouisianaVoice writer
Following up on Tom Aswell’s recent posts regarding the Louisiana State Board of Dentistry, there is another State Board with an extensive history of questionable activity: The Louisiana Auctioneer Licensing Board (LALB). The board is comprised of five auctioneers and two at-large “consumer” members. The board’s actions include turning a blind eye to an illegal practice called “shill bidding,” ignoring the apparent victimization of elderly auction clients, racism and possible travel voucher and payroll fraud.
LINK
Former fraud investigator joins LouisianaVoice with rare insider’s closeup look at State Auctioneer Licensing Board
March 18, 2014 by tomaswell
Robert Burns of Baton Rouge, a former fraud investigator, has agreed to join LouisianaVoice as an underpaid (read: gratis) researcher and contributing writer. His initial series of stories will chronicle his experiences as a member of the Louisiana Auctioneer Licensing Board.
—Tom Aswell
By Robert Burns
LouisianaVoice writer
Following up on Tom Aswell’s recent posts regarding the Louisiana State Board of Dentistry, there is another State Board with an extensive history of questionable activity: The Louisiana Auctioneer Licensing Board (LALB). The board is comprised of five auctioneers and two at-large “consumer” members. The board’s actions include turning a blind eye to an illegal practice called “shill bidding,” ignoring the apparent victimization of elderly auction clients, racism and possible travel voucher and payroll fraud.
LINK
Posted on 7/16/16 at 8:58 pm to bhtigerfan
quote:
You must be going to "absolute auctions
Nope
Posted on 7/16/16 at 9:00 pm to stout
Well why don't they just have a reserve price?
Posted on 7/16/16 at 9:00 pm to OweO
Neither of your links help. This isn't about the auctioneers themselves placing plants and that's what both of your links are, idiot. You are so quick to try to start shite with me that you don't even read.
Posted on 7/16/16 at 9:01 pm to stout
Are you planning to become a star on Storage Wars?
Posted on 7/16/16 at 9:02 pm to bhtigerfan
quote:
Well why don't they just have a reserve price?
Because they are also selling local Government stuff during the same auctions and that stuff is no reserve so they make the whole auction no reserve.
Posted on 7/16/16 at 9:02 pm to upgrayedd
quote:
Never knew an owner could bid on their own item
Why not? If he wins, he's simply established the price he's willing to not sell for.
Posted on 7/16/16 at 9:04 pm to stout
We see it all the time in marine equipment auctions. A lot of times the owners just want to see what the market will bare and will buy back their equipment and sit on it until the market changes.
Posted on 7/16/16 at 9:06 pm to tgrbaitn08
So no laws to stop it and the auction companies can just play dumb to it as long as they aren't the ones actually doing it on items they own?
Posted on 7/16/16 at 9:16 pm to stout
In my expierence the auction companies don't own any of the equipment. It's also a common practice with the banks as well. If the bank doesn't get what they want, they will bid it up and buy it back if the price isn't high enough.
Posted on 7/16/16 at 9:17 pm to foshizzle
quote:
Why not? If he wins, he's simply established the price he's willing to not sell for.
That's what reserves are for.
Posted on 7/16/16 at 9:22 pm to tgrbaitn08
quote:
the auction companies don't own any of the equipment
This company always has items that they own mixed into the auction.
Posted on 7/16/16 at 9:23 pm to stout
I don't think that practice is ethical. Legal is another story
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