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GeoWannaBe t1_jbaqv12 wrote

Reply to comment by BackItUpWithLinks in It is legal under Maine law for Auctions to use fake bidders in the audience by [deleted]

Yes, but the Auctioneer does not have to reveal whether or not "friends" are in the audience to up the bids. The only rule about this applies to the auctioneer and owner of the item themselves, not their accomplices. It is a very large loophole.

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BackItUpWithLinks t1_jbar5jb wrote

If they’re bidding to drive up the price but would not pay for the item if they won, they’re bidding for the auctioneer.

> the Auctioneer does not have to reveal whether or not "friends" are in the audience to up the bids. The only rule about this applies to the auctioneer and owner of the item themselves, not their accomplices.

Where does anything say that?

According to the page I linked, it’s not allowed.

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GeoWannaBe t1_jbat5mt wrote

What you linked says that the Auctioner must disclose whether or not he can actually bid as well. It does not say that he must disclose other bidders that are in the audience solely for the purpose of raising the auction prices. There's a big difference between the auctioneer wanting an item for himself and bidding vs. having pawns in the audience. The State says that the law does not address that issue. Please see my edit to the topic.

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BackItUpWithLinks t1_jbatn5z wrote

This is pretty straightforward.

> What you linked says that the Auctioner must disclose whether or not he can actually bid as well. It does not say that he must disclose other bidders that are in the audience solely for the purpose of raising the auction prices.

If somehow that “other bidder” won, would they pay for the item? If not, they’re working for the auctioneer and according to what I posted that person must be disclosed.

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GeoWannaBe t1_jbauksr wrote

My understanding of the scam is that the item would go back to inventory. My view from past readings is that this is something that traveling "estate" auctions would do in the summer time - certainly not well known auction companies. Sort of the "Let me coat your driveway with this left over sealer from another job" sort of scam.

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BackItUpWithLinks t1_jbav9lu wrote

There’s a difference between “it’s not allowed” and “they did it and didn’t get caught”

Shill and by-bidding could/should get the auctioneer in trouble. I have no doubt it happens and they don’t get caught. Or they do get caught and they shut down that auction license and apply for a new one.

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GeoWannaBe t1_jbaweee wrote

Again, I think this is a problem only with the out-of-state, quick buck auctioneers. I will write to the Board a second time and this time ask it what does it mean that the Auctioneer must disclose any of his biddings. I will specifically ask again if pawns, for the sole purpose of increasing bids, are banned. Happy to include any other question in my email to them if you have one. I will respond to this sub once an answer is received.

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