MEDIA RELEASE: For Immediate Release
9 August 2011
Shill bidding: Unlawful, unethical and dumb
Trade Me has applauded the conviction of Christchurch business Morrison Car Company for shill bidding on its own
auctions.
“Shill or ghost bidding is one of the most immoral forms of behaviour in a marketplace,” said Trade Me’s Head of Trust & Safety, Jon Duffy. “We’re delighted the Commerce Commission took such prompt action on this incident, and we’re equally
pleased with Judge Farish’s sentencing which included $45,000 in fines. The Commission was able to make good use of our
investigation materials to get a solid conviction.
“Healthy marketplaces depend on transparency and trust and shill bidding undermines both of these. We support such
perpetrators being made an example of and hope this sends a clear message. In the case of the Morrison Car Company, not
only did they participate in shill bidding, they were also foolish enough not to display a Consumer Information Notice
(CIN).
“Trade Me is one of the most public marketplaces in the country. To try to avoid CIN requirements in such a marketplace
is not only unlawful, it’s dumb.”
Trade Me has a range of trust and safety tools operating across the site, many of which are focused on misleading or
anti-competitive behaviour. Shill bidding is dealt with swiftly and Trade Me will work closely with the Commerce
Commission in such cases.
ENDS