The Good, the Bad, and the Ugly of Online Auctions
By Mike Shultz, Infoglide Software CEO
[Note: This is a response to a recent comment that was posted by Steve DelBianco of NetChoice about Mike’s post “When Technology Turns Tradition on its Head.”
ONLINE AUCTIONS ARE FABULOUS! There, I said it, and I mean it. From most any spot on the face of the earth someone with an Internet connection can browse, read, review, consider, and with the exception of touch and smell, decide to buy almost anything from a Mini-Cooper (family friend purchased online from New York and delivered in Texas) to replacement flippers for a pin ball machine (one of our employees). Houses, furniture, electronics, clothes, baby food, and on and on. It is the most amazing bazaar ever. ONLINE AUCTIONS ARE FABULOUS!
So what is the big deal, then? The consumer generally gets what they buy, and the rating system utilized by the major net sellers provides a fairly reasonable community policing policy, and so what is the big deal?
The issue is that the seller enjoys complete anonymity. As long as the net seller delivers the goods as promised, reviews are positive and everybody is happy. So where is the harm? Or as Mr. DelBianco writes, “Online marketplaces have operated successfully with this so-called anonymity factor, to the satisfaction of millions of buyers!”
The issue is that the unintended consequence of the anonymous seller is that the “chain of custody” of the goods is unknown. Why does that matter? Well, in the most dire circumstances a seller could be selling toys with lead paint or recalled merchandise that is unsafe. But even if no one is physically hurt, there are still vast amounts of products that are acquired by theft and fraud and then resold on these wonderful auction sites.
Still, who cares? Who is harmed? Why not get a good deal on something, even if it is stolen property? The short answer is that you care. You are harmed every time an auction site facilitates the sale and purchase of stolen merchandise.
The fact is that your mother taught you when you were a youngster that any action that is wrong, is wrong. She told you that when you put the gum in your pocket when you walked out of the store. She told you that when you got caught cheating in school. Well, maybe you never shoplifted the gum or cheated in school, but you still knew it was wrong. It was wrong then, and it is still wrong. The stolen property was taken from its rightful owner, and the rightful owner suffered a loss. That is wrong. The rightful owner likely puts those losses into the price of the other things they sell, and then it gets passed along to you in the price of things you buy at the store. It is just wrong. Period. Wrong to steal, wrong to cheat, and wrong to take advantage of everyone else in the chain.
How big a deal is it, really? It turns out to be a few billion dollars a year. That’s billion with a B. That is money that likely goes into the hands of organized crime, like the Mafia (you remember those guys), or to rings of professional thieves or, worst case scenario, into the hands of groups that support terrorism.
Billions of dollars come out of our collective pockets and into the pockets of people who steal merchandise. It kind of makes that really good deal stink, doesn’t it?
The issue is anonymous sellers. Why don’t they want you to know who they are? If they are legitimate, why not operate out in the open? Why do we let them make these FABULOUS sites havens for criminals? Fact is that it doesn’t have to be this way. Simple, effective, and inexpensive technology can solve this problem and fast. Why not do it? Why not protect each other from the bad guys? Why not?
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