Most of the time I think the bidders believe they are getting an unredeemed/unused redemption. I'm sure alot of the winnning bidders end up filing a case against the sellers. Considering Ebay's pro-buyers policy, the buyer probably wins the case.
The manufacturers (Topps, Upper Deck, etc) track all of the redemptions in their computer system thus minimizing the opportunity for fraud so I don't think someone could say the code didn't work.
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