It is against Ebay rules, which states in its User Agreement that you are not to "manipulate the price of any item..." Unfortunately, it is an example of a small injury done to a lot of people that no single person would be willing to spend the $$ to take to court.
It is not considered illegal shilling in CA if the auctioneer discloses in advance that the consignor may bid on his or her items [Civil Code 1812.608(h)]. If the listing doesn't do that, the seller is breaking the auction laws in CA, which is where Ebay hosts and where the User Agreement provides for contractual jurisdiction.
The User Agreement on Ebay also states: "In accordance with Cal. Civ. Code §1789.3, you may report complaints to the Complaint Assistance Unit of the Division of Consumer Services of the California Department of Consumer Affairs by contacting them in writing at 400 R Street, Sacramento, CA 95814, or by telephone at (800) 952-5210."
So, who's gonna drop a dime on the seller?
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