The Need of Regulating Auction Sites 

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bullet imagebullet imageThe question whether auction websites be regulated or not has been brought to the world’s attention because of the constantly growing number of websites that are available these days. Can any auction site be trusted to be run fairly or honestly without any regulation?

The concept of the regulation raises many questions like;

  • Who would regulate?
  • What must be regulated?
  • Who will be paying for it?
  • How would they regulate such global auctions?
  • Where to stop?

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All incredibly tough and mostly impossible to get them right. As with these regulations there are some unexpected consequences. Would the regulation simply stifle the innovation or the competition because of the higher costs?

One of the concerns is that introducing the regulation will encourage the users to become less discerning about their actions. If they think regulation are applied they tend to act less cautiously, trusting a website to act in manner they should rather than treading carefully. It also motivates the blame culture, like that when things are going wrong as many will always flaunt the law they look to the blame government instead the site. Regulation often has unintended consequences, however are these consequences outweighed by the advantages of regulation or is it better for the market to simply name and the shame?

THEFT

The main issue is that items sold on these sites are the things stolen or looted in the real world. In theory, shoplifter could create a new form of organized crime where the merchandise was regularly stolen and sold on these sites. Unregulated auctions site could result in a new wave of corruption with such auction sites like being a newer, easier way for the criminals to released stolen items. Such auction sites like being a newer, easier way for the criminals to released stolen items.

FrauD

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Some may also argue that the auction sites should be regulated as they themselves may not be on up and up. Some of the sites have been popular to drive the prices up on their own auctions by having their own bidders place the bids to keep the auction going. Often the bidding stops at a relatively low price and then results in loses or only the smaller profits for the auctions site. Realizing this, some of the sites employ fake bidders to drive the price of the items up and to increase their own profits. By applying regulation government can prevent form such type of frauds.

What is simple for online auctions is to take the advantage of bidders as well as criminals to get benefits of the online auction sites. It will incredibly be difficult as well as expensive to stop such behavior by regulations. Reading Dealdash review or any other auction review can help you realize the credibility of that auction site.

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