The record of $1-auction dealers on TradeMe took another big hit last week, with the site again dumping its biggest automotive trader for alleged shill bidding.
Japanese-owned Auckland wholesaler and dealer, Auto Co – which traded under the main account ‘theautoco’ – has been pulled from the site.
In a case that TradeMe head of trust and safety, Jon Duffy, confirms – according to initial inquiries – is bigger than their two other recent major cases – Online Vehicle Auctions Limited and Repo Cars.
AutoTalk had been monitoring activities on the ‘theautoco’ account in recent weeks, but TradeMe says it was a complaint from another member that lead to the investigation.
Duffy says the complaint was received on Monday night, and the account suspended on Tuesday.
AutoTalk’s investigations show shill bids were allegedly being made from a number of accounts, with the suspect accounts often ending up buying the vehicles, which were then relisted or shifted on to classified listings.
Duffy says their investigation shows the number of trades affected by alleged shill bidding could be in the hundreds.
“We are still tallying them up, but it is in the hundreds,” Duffy says.
That tally is with the site restricting its investigations so far into just auctions run in the last year.
‘ the autoco’ and six other accounts have been suspended. All of the firm’s listings have also now been removed from the Autobase system.
Duffy says they have been in talks with the company. Duffy spoke to the director, Masashi Umeoka, on Thursday, but would not go into the nature of the conversation.
AutoTalk spoke to Auto Co sales manager, Fred Greer, who initially said the firm’s general manager had been stood down due to the issue, although he later retracted that saying the company’s director did not wish to comment to media at this stage.
Paul Nicholson is listed as the general manager on the company’s website, and AutoTalk has been told he is currently undergoing major surgery.
TradeMe has had an investigator on the case and a complaint and evidence has now been filed with the Commerce Commission.
“We will be making a complaint to the commission,” says Duffy. “It will be interesting to see if it is picked up.”
Duffy acknowledged the case could ultimately end up in the hands of the police.
“It is arguably ‘accessing a computer system for dishonest purpose’.”
“At this stage it is unclear if it is a rogue employee or a company wide issue,” Duffy says.
Duffy says TradeMe does not have the ability to unwind deals that have been affected by the shill bidding, but will be making information available on how it changed prices to all parties.
“We are compiling a list of affected members, and the amount the purchase price has been effected by the shill bidding, and we will be suppling that information to the commission, the trader and the members.”
He says TradeMe will be contacting affected members, and would prefer they waited rather than using customer service lines.
Duffy says they are also working with Auto Co’s lawyers to have a ‘trusted trader’ panel removed from the dealers’ site which they did not have the right to use.
Do you have more information or a view on this story? Leave a comment or contact Richard Edwards – 09 309 2444 extension 1 or richard@autotalk.co.nz
