You might have been able to save up to £250 on eBay’s online storage auction service, but you might not be able to do that online.
In a new report, the Financial Conduct Authority (FCA) has warned of the dangers of bidding online.
The regulator says you should use caution when you are bidding on online storage auctions to avoid potential issues such as duplicate bids.
It says that bidding on a storage auction is not always a good idea, and that you should avoid “unusual or high-risk” bids if possible.
Here are some tips to help you navigate the internet auctions world.
Bid with caution Online storage auctions are typically a bit of a bidders’ paradise, with lots of potential winners and lots of sellers.
That means it’s easy to get caught up in the frenzy of the auctions.
But you should still be careful, the regulator warns.
“If you do bid on an auction that is unusually high-volume or high risk, you can lose money,” the FCA said.
“The best advice is to avoid bid-swapping or bidding on auctions that are not the highest-volume and riskiest bids.”
It also says that bids should be at a minimum of 25% of the total value of the auction.
“This means that you can bid up to 80% of what you are able to bid, or bid down to a level where you can’t get any more.”
It recommends that you avoid bidding on items that are oversold or under-delivered.
“When bids are at this level, it’s possible to lose a lot of money and can have you at risk of breaching the bidding rules,” it said.
The FCA has warned that auctions should be conducted in person, or via email.
You should avoid bidding with a fake name If you’re bidding on an online storage sale, the FACA suggests you don’t bid on the same name as the person you are buying the item from.
It also advises that you don, at least for the first few hours of the bidding process, avoid using a fake surname.
“It’s very easy to be tricked into bidding on someone else’s name when you’re not paying attention,” the regulator said.
Avoid using fake email addresses “When you’re sending an email from your email address, the recipient is not your actual email address.
They’re your name and email address,” the watchdog said.
That is, it is a breach of the Fair Trading Act.
“Bids can be sent to a fake email address and then re-sent, without any restrictions on the email address you use,” the commission said.
This could potentially put you at the “risk of being prosecuted”.
“If a buyer wants to use an email address that is different from the one you have on file, you should check to make sure that it is in fact the real address that you’re using,” the report said.
It said that it was not possible to verify whether the buyer actually has the correct email address on file.
If the buyer does, the commission says you could be prosecuted.
Avoid bidding on “premium” auctions The FCE says it is possible to bid on auctions where you will be receiving a “premier” price, which is typically around 50% of a lower-priced price.
“Some auctions may include a ‘premium’ bidding system which is a system where the highest bid wins,” the agency said.
If you bid on a auction where you are getting a higher-price, the auctioneer will not remove you from the auction unless the auctioneers “reasonably believes” that you are breaking the auction rules, the watchdog added.
“Auctioneers should not allow a bidder to bid for a lower price than the lowest bid they would normally pay.”
But, it added, the rules “require that the lowest price is paid, regardless of whether the auction is being conducted on the highest or lowest bid”.
For example, if you are auctioneering a “top bid” of £1,000,000 and the auctione is able to “reasonally believe” you are violating the auction’s rules, then you should not bid on that auction, it said, adding that it also recommended that you not bid “on an auction where the buyer is getting a lower bid than the highest bidder.”
“It is therefore a breach if you bid for an auction with a higher bid than you would normally be expected to pay,” it added.
Bidding on auctions with high margins “Bidding for auctions where there is a high bid-margin, for example for a premium bid, will often result in you losing money,” it warned.
This is because the “bid-margin” is a measure of the amount that you get paid for your bid, and the FCE said that you would usually lose money if you “bid below your bid-level”.
The regulator added that it does not recommend that you bid against someone you know is in breach of