Are secret bids really secret?

[MikeKing]

Are the bids on internet auctions really secret?

 

I just find it weird sometimes when my bid is suddenly maxed out.

 

Do consumers have any rights, guarantees, or leverage regarding truth behind the 'secret bids'?

[gmarguli]

Are the bids on internet auctions really secret?

 

Sometimes. Deal with bigger and more reputable companies and your chances are better.

 

 

I just find it weird sometimes when my bid is suddenly maxed out.

 

Which auction venues? I've been maxed out on some venues and then the next auction I get the item for a fraction of my max.

 

Perhaps you're just placing bids close to market and they would bring basically the same price without your bid there.

 

 

Do consumers have any rights, guarantees, or leverage regarding truth behind the 'secret bids'?

 

Sure they do. What those are would vary by state.

[truthteller]

From experience, several of the auction houses sometimes will disclose the high bids before the auction and even the reserves when asked. I was in the office of a prospective auction house. The person who I was talking to suddenly received a phone call. The conversation went as follows:

 

Auction guy: Hello, Mr. so and so, what can I do for you?

Phone: blah, blah

Auction guy: Yes, let me pull up the lots.

Phone: blah, blah

Auction guy: Yes, the reserves are in, you have to beat lot XXX by YYY amount, and you have to beat lot by QQQ amount. OK. See you at the auction.

 

First of all, I was shocked. Second, I realized this was very, very common in the industry. Disclosure of existing reserves to favored clientel was just the name of the game. If you are a consignor, think twice, since many auction houses have preferred bidders and consignors and often 'strategic' information is shared.

 

 

TRUTH