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  Home Auction Resources & Tools Auction Tips & Tactics

 




Dealing with Closed Auctions


by Nancy L. Hix

Just when you figure out how online auction sites make their money--from listing fees and commissions--you get an email from the site administrator telling you that one of your auctions "has been closed due to a terms and conditions violation." Closed how? What did it violate? Who told on me? And why would they close an auction that had commission-producing active bidding?

Close That Baby

It can happen for a few reasons. One is that someone saw your auction, thought it violated either the site's terms and conditions or their own copyright (more on that below), and notified the site. Then someone from the site viewed your auction, agreed with the complaint, and ended the auction. Another possibility is that the site conducted an automatic "robot" search for words and phrases that might indicate prohibited items for auction. Your listing came up, and they closed it without a second glance.

The Policy

Most of the online auction venues post a similar list of items that you can't sell on their sites. Bootlegged recordings, illegal software, firearms and illegal weapons, counterfeit items, live animals--these and other items all are an auction no-no, and will get your auction closed pronto. Keep it up, and you might face legal action or loss of your site account. The sites do this to protect themselves and the sellers. eBay even has its own protection program in place to safeguard intellectual property owners from infringement.

The VeRO Way

eBay's controversial Verified Rights Owner (VeRO) Program helps filter auctions for violations beyond just complaints or "bot" searches. The program works to ensure that items listed for auction do not infringe upon the copyright, trademark, or other intellectual property rights of third parties. VeRO participants may report and request removal of allegedly infringing auction listings.

Any person or company who holds such intellectual property rights, which may be infringed by eBay auction listings, is encouraged to become a VeRO program member. (More information is available at eBay's VeRO page, where you'll find guidance on how to report violations if you're an intellectual property owner and feel your rights have been violated via an eBay listing.) VeRO participants include large companies such as Microsoft, as well as smaller companies and individuals.

Yahoo Auctions

Yahoo Auctions seems to be getting tough when it comes to pulling auctions. The Auction Guild (TAG) received reports from users that the site closed their auctions for infringements that the Yahoo "bots" found. Apparently, if a site search uncovers anything that even hints at being in violation, the auctions (and sometimes seller accounts) get yanked. According to the site's "Reservation of Rights," "Yahoo expressly reserves the right to, but has no duty to, refuse, reject or remove any listing in Yahoo's sole discretion." You can appeal, but the chances of getting a response are slim. A better course of action would be to change the auction to comply with the rules, or not relist the item.

Amazon.com Auctions

A user named Margaret had a book listed on Amazon.com Auctions titled "Bitches & Zombies." The site yanked it because the word "bitches" was not allowed. Margaret didn't relist the book because she didn't want to list a book without giving the title. Amazon.com notified another seller that his listing for a vintage shot glass with graphics of Indians (the highest number of ounces showed a drunken Indian) had been pulled due to a site violation involving racist matter. The seller did not appeal.

However, what about folks who rely on selling these types of items for income? One seller found a way around the "bad words in book titles" problem. Amazon.com Auctions pulled her auction for offensive content, so she relisted her book as "No Sh--! There I Was." Some items, like the Indian glass, are best disposed of entirely. Surely, there are less offensive things available to sell.

Can You Protest?

Yes, protesting is always an option, but in most cases, the online auction sites will close the auction first and let you ask questions later. If you feel your auction has been closed without due reason, let the site know by clearly stating your case in an email. If the closure was unfounded, you'll usually have one choice: Relist the auction and the site will waive listing fees. This also applies to auctions you had to modify in order to remove the violation.

What About My Bids?

Unfortunately, any bids on an auction ended early by the site vanish into Never-Never Bidland. Even if you win the case with the site, you lose your bids on the auction. Once you start your auction over, it's up to you to let any of your previous bidders know that the auction passed scrutiny by the site and your item is once again on the block--this time legitimately and legally.

Cases In Point

Jen Hassler of the Online Auction User's Association used the word "banned" in a book title that was a frequent target of site restrictions. eBay discovered the listing, closed the auction, and notified her. The site let her restart it after modifying her auction description to remove the word "banned" from it.

In another case, eBay received a complaint about an auction for a blouse where, in the accompanying photo, the model's nipples were visible. eBay ended the auction and the seller protested. She told them that the model was a mannequin that didn't have nipples. She explained that what looked like nipples were actually parts where the shirt poked out. eBay allowed her to relist the auction with no changes to the description or the photo.

The rub? Before eBay pulled the blouse auction, two buyers were engaged in a bidding war and the seller stood to make a nice profit. However, the bids self-destructed when eBay closed the auction. The frustrated seller had to contact the bidders and offer the embarrassing explanation for eBay's action. By then, unfortunately, both had lost interest.

Another seller, during her first week of listing, received an email from eBay indicating that the site had closed her auction. The email from eBay contained a link to what apparently was a trademark attorney's Web site. She didn't realize that the outfit she had listed as a "Tommy Hilfiger" was actually a fake. She's still not sure it was a fake, but, as she put it, "I was new and tres confused!" She didn't relist the item.

The Bottom Line

Know the site's policy on what you can and can't list, and stay away from listings that could be confused as such. Even when you're not guilty, the burden of proof will be on you, and you stand to lose. No sh--.

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