Expert: Suzie Eads - 8/4/2010

Question
If I list an item on eBay, NOT using a reserve, and the final winning bid is substantially lower than the real value of the item - is there any legal action that can be taken against me by the winner for not honoring the winning bid and just refunding the money back to the winning bidder? Winner of auction is in a different state than I, if that makes any difference. Not concerned about feedback or ratings, or eBay acct, just the legal actions.

Thanks!

Answer
Dear Don:

I'm sorry it took me a few days to respond. Your note to me seems like you are trying to pull something off that is dishonest.  I wonder why you would not just use a reserve, or start the item at what you really want for it?

To answer your question; No, for the most part nothing will happen to you.  Could the buyer take you to court for not honoring your contract?  Yes. Have buyers ever done that? Yes, but it's pretty rare.  I don't understand why you would want to do something like this that seems so dishonest. You say you are not concerned about feedback ratings or your eBay account, then why are you using eBay?  Why not just sell it outright on CraigsList?

My advice to you is to start this auction at the price you want, or use a reserve.  eBay should not be used in the way you are wanting to use it.Buyers are there to bid and receive their items. If you do something like this you not only are hurting your personal integrity but also making eBay look like a place for scammers.  I realize you intend to give the money back to the buyer if it does not reach the price you want, so you wouldn't be stealing, but to many people (and your buyer, that is stealing. I can not condone this type of dishonesty.  

I hope you will re-think your plan.