What defines "auction fraud" in the auction process?

Auction fraud is characterized by deceptive practices that manipulate the bidding process or misrepresent the items being auctioned. This behavior undermines the integrity of the auction system and can involve tactics such as shill bidding, where sellers artificially inflate prices by posing as bidders, or misrepresenting the condition or history of the items being sold. Such actions not only deceive genuine bidders but also violate ethical and legal standards, risking the credibility of the auctioneer and the auction house involved.

Unintentional errors made during bidding, failure to deliver sold items, and technical glitches may cause problems during an auction but do not constitute fraud as they lack the element of deceitful intent. Auction fraud specifically hinges on intentional manipulation and misrepresentation, which is critical to understanding how to protect oneself and maintain fairness in the auction industry.