Price Gouging Auction

[holsteinatlanta]

I have a question about price gouging.  I have an item that I listed as a 3 day auction.  I think the retail price is say $29.99 before covid.  I listed it at $39.99 three day auction.  Well it got bid up to $81!  So there are losing bids of $80, $75, $70.  Now I wouldn't ordinary list this item at 80 and never expected it to go this high or get bids at all.  So what is price gouging?  The bidder ran the price up 

Now it turns out I have 12  more of the item.  I offered it to the winning bidder for $81 each, then told him that the next lowest bid is $75 so he can have 12 more at $75 each.  (Is that gouging) btw my item is a package of 12 other sellers have just one for $20  and getting it. That may  be gouging. 

Please tell me how to proceed.  Do you thing the ebay support reps can answer the question or will the lange barrier be a problem

[nobody*s_perfect]

If you contact customer support, then there's a good chance they could just pull the listing (depending on what it is).

I'm confused about your strategy. The second-highest bid was $80, not $75.  If you call CS about offering the extra items to the winning bidder,  there's also a chance that they will flag you for considering an off-eBay transaction.

Your only legit strategies per eBay policy are to send SCOs to the underbidders, or to relist the item.  You can relist in fixed price format and show 12 available at $80 OBO.

[holsteinatlanta]

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@nobody*s_perfect wrote:

If you contact customer support, then there's a good chance they could just pull the listing (depending on what it is).

I'm confused about your strategy. The second-highest bid was $80, not $75.  If you call CS about offering the extra items to the winning bidder,  there's also a chance that they will flag you for considering an off-eBay transaction.

Your only legit strategies per eBay policy are to send SCOs to the underbidders, or to relist the item.  You can relist in fixed price format and show 12 available at $80 OBO.

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The plan was to make a private auction of $75 x # items the buyer wants. 

I am waiting on him to send out second chance offers.  Nothing will be sold outside of ebay.  

[holsteinatlanta]

But really my #1 question is as the say 'Let the market decide ' and someone bid up the item to $81 can they say I gouged them?

[wastingtime101]

What's the item?

eBay's recent comment about price gouging and auctions:

https://community.ebay.com/t5/Weekly-Chat-with-eBay-Staff/Community-Chat-April-1-1-00-pm-PT-General-...

[corvettestainless]

You are listing the item with a starting price at 33% higher than before the CV19 issue-so you are VERY MUCH PRICE GOUGING. Selling an item over 10% of pre crisis price, is illegal, period- regardless how the buyer got to that price. 

Ebays take on this is as follows:

auctions that escalate to an excessive price for certain high demand products would be considered price gouging violations and actioned appropriately. In addition to price gouging being unethical and an eBay policy violation, it is also illegal in most places. As such, we cannot allow auctions for certain items and would instruct a seller on how they can relist with a fixed price format where appropriate. 

[picknparley]

Following through with your auction and subsequent 2nd chance offers will likely get you suspended. 

Chances are the auctions will not have legitimate payers or you will surely get an INAD claim against you.  You could easily lose your items and any money you collect.  

ebay may even come back next week, etc and tell you the listing was in violation, all your buyers have been refunded at your expense and no one has to send anything back.  

Trying to get around the rules will not bode well for you. 

[muttlymob]

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@holsteinatlanta wrote:

But really my #1 question is as the say 'Let the market decide ' and someone bid up the item to $81 can they say I gouged them?

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If it is an essential item, then yes, yes they can call it price gouging.

[holsteinatlanta]

Bulk crate of tissues.  The final price ended up being $6 a box.  Actually looking at other listings $6 a box isn't really that high at all. 

[cynthealee2]

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@holsteinatlanta wrote:

I have a question about price gouging.  I have an item that I listed as a 3 day auction.  I think the retail price is say $29.99 before covid.  I listed it at $39.99 three day auction.  Well it got bid up to $81!  So there are losing bids of $80, $75, $70.  Now I wouldn't ordinary list this item at 80 and never expected it to go this high or get bids at all.  So what is price gouging?  The bidder ran the price up 

Now it turns out I have 12  more of the item.  I offered it to the winning bidder for $81 each, then told him that the next lowest bid is $75 so he can have 12 more at $75 each.  (Is that gouging) btw my item is a package of 12 other sellers have just one for $20  and getting it. That may  be gouging. 

Please tell me how to proceed.  Do you thing the ebay support reps can answer the question or will the lange barrier be a problem

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Depends on what said item is...  Essential item or collectors item...

Say it's a T-Shirt with the slogan "Impeach Trump 2020" or "Trump needs to go"  well before Covid it might have sold at the 29.99... now it's worth more to that buyer and they were willing to pay a lot more to have that shirt.

But if it was a case of masks, or hand sanitizers then you are gouging based on what the law in most of the states.

(not a trump hater or supporter was just the first thing that popped in my head cause of my GPK cards several of mine may end up being worth more NOW simply because of what is going on and won't be in 8 months or better when this is over)

[luckythewinner]

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the retail price is say $29.99 before covid.  I listed it at $39.99

{snip}

never expected it to go this high or get bids at all.  

You never expected it to get bids at all, so you decided to start the auction $10 over retail price?

Sorry, I'm calling bull. 

[cynthealee2]

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@holsteinatlanta wrote:

Bulk crate of tissues.  The final price ended up being $6 a box.  Actually looking at other listings $6 a box isn't really that high at all. 

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They are gonna nail you for it.  Toiletries are an essential right now in several states, and prohibited by eBay right now.

[holsteinatlanta]

I contacted ebay support and will not offer second chance or re-list until I hear it from them. 

[andrew547]

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@holsteinatlanta wrote:

But really my #1 question is as the say 'Let the market decide ' and someone bid up the item to $81 can they say I gouged them?

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Two different issues:

1. Price Gouging as defined by law

2. Price Gouging as defined by ebay

And these are two different things in several respects. One is legally. Another is the items considered eligible for price gouging.  The laws on this typically say "essential goods". Ebay appears to be saying "any price that they consider 'taking advantage of the situation' on any item they deem relevant".

One example I've seen is a video game. Another is a random child's toy. These would not meet the criteria for price gouging legally, but ebay is different.

I think you have to navigate both. And honestly, while you obviously mean well, you've also drawn attention to yourself as ebay moderates these boards. If you avoid legal jeopardy and listing products ebay has banned recently, I think the way an item would be brought to ebay's attention is if someone reports it.

[holsteinatlanta]

Thank you for your very helpful answer.  I was going to call ebay and now just emailed them and will hold tight until I hear back.