Online auction site, eBay is facing a lawsuit from a disgruntled customer who alleges that the firm's bidding policies lead to unnecessary costs for auction participants.
According to a Reuters report, in a case filed last week in Santa Clara County Superior Court which is seeking class action status, lead plaintiff Glenn Block argued that eBay's practice of e-mailing users to warn them that although they are the highest bidder on an item, they may lose it if they do not increase their maximum bid level, constitutes "shill bidding".
Mr Block claimed that he lifted his bid on an item from $111 to $112.50 following such a communication from the firm, despite the fact that he could have won the auction at the lower price.
Speaking to Reuters this week, eBay spokesman, Hani Durzy explained that increasing a maximum bid is voluntary, and the notification sent by the firm of potentially higher bids is merely intended to inform the customer of the situation.
"Based on what we know about what's being alleged, it appears the plaintiff completely misunderstands the functionality of the eBay bidding system," he observed. However, he went on to add that the company had not yet seen the lawsuit.
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