| The question of whether auction sites should be | | | | Fraud |
| regulated has been brought to the world's attention | | | | Some argue that auction sites should be regulated |
| with the increased number of sites available these | | | | because the sites themselves may not be on the up |
| days. Can auction sites be trusted to be run honestly | | | | and up. Some sites have been known to drive the |
| and fairly without regulation? | | | | prices up on their auctions by having their own bidders |
| The concept of regulation raises so many questions | | | | place bids to keep auctions going. Sometimes the |
| such as who would regulate? How would they | | | | bidding on an auction stops at a relatively low price |
| regulate global auctions? What should be regulated? | | | | and results in loses or only small profits for the auction |
| Where does regulation stop? Who will pay for it? And | | | | site. Recognizing this, some sites employ fake bidders |
| so on. All incredibly difficult and for the most part | | | | to drive the price of items up and to increase their |
| impossible to get right. As with any regulation there are | | | | own profits. Regulation might prevent this type of |
| also unexpected consequences. Would regulation | | | | fraud. |
| simply stifle innovation or competition due to higher | | | | Can unregulated Auction Sites just Do Anything? |
| costs? | | | | Unregulated auction sites could be selling inferior |
| Of most concern is that the introduction of regulation | | | | merchandise that is not as it was advertised. They |
| will encourage users to become less discerning about | | | | may not send the auction items to the winners at all or |
| their actions. If users think someone is regulated they | | | | win their own auctions. Is (proper) regulation the most |
| tend to act less cautiously, trusting a site to act the | | | | effective answer or can the markets simply ferret out |
| way they should rather than treading carefully. It also | | | | those unlawful few that give the majority of honest |
| encourages the blame culture, such that when things | | | | auctions a bad name? Will regulations really stop this |
| go wrong (as some will always flaunt the law) they | | | | kind of behaviour? And at what cost? |
| look to blame the government rather than the site and | | | | While it is easy for online auction sites to take |
| taking proper responsibility. Regulation always has | | | | advantage of bidders and criminals to take advantage |
| unintended consequences, but are these | | | | of online auction sites, it will be incredibly difficult and |
| consequences outweighed by the benefits of | | | | expensive to stop this behaviour through regulations. |
| regulation? Or is it better for the market to simply | | | | The market should be given a chance to name and |
| name and shame? | | | | shame dishonest sites and the law should then |
| Theft | | | | intervene to punish those concerned. Regulation will |
| One concern with these sites is that items could be | | | | only cost money and prevent innovation, which at the |
| stolen in the real world and sold through these sites. In | | | | end of the day brings the greatest value to us all. |
| theory, shoplifters could create a new form of | | | | Regulation will also increase the costs of doing |
| organized crime where merchandise was regularly | | | | business and reduce competition and lead to higher |
| stolen and then sold online. Unregulated auction sites | | | | costs...costs that will likely far exceed the cost of any |
| could result in a new wave of crime with these auction | | | | fraud that exists. I for one would like to let markets |
| sites just being a new, easy way for criminals to | | | | name and shame...and only if markets fail at this task |
| unload stolen merchandise. | | | | move to a more rigid regulated model. |