Legal Definitions - bidding up

Bidding up describes the practice in an auction where participants continuously offer higher prices for an item, one after another, causing the price to increase progressively. This sequence of escalating offers drives the final sale price upward. While competitive bidding is a normal part of auctions, "bidding up" becomes unlawful if individuals conspire to make these higher bids artificially, solely to inflate the price for their own benefit or for the seller's benefit, rather than genuinely wanting to purchase the item.

• Example 1: Art Gallery Auction

  At a prestigious art auction, a rare sculpture is presented. The bidding starts at $50,000. One collector offers $55,000, immediately followed by another bidding $60,000, and then a third raising it to $65,000. This rapid succession of increasingly higher offers from different interested buyers is an example of bidding up the price of the sculpture, reflecting its high demand.

• Example 2: Real Estate Foreclosure Auction

  A bank is auctioning off a foreclosed commercial building. Several investors are present, each hoping to acquire the property. The auctioneer opens the bidding at $1.2 million. Investor A bids $1.25 million, then Investor B bids $1.3 million, and Investor C bids $1.35 million. Each new, higher offer from a different investor demonstrates the process of bidding up the property's sale price.

• Example 3: Online Collectible Auction

  An online platform hosts an auction for a vintage, first-edition comic book. Over the course of a week, numerous enthusiasts place bids. Initially, the highest bid is $300. A day later, someone bids $325, then another person bids $350, and so on, with the price steadily climbing. This continuous submission of higher offers by different potential buyers illustrates the concept of bidding up the value of the rare comic book.