Fraud Policy

The Lily Auction is a people’s online trading community. Our mission is to promote a site that provides fair and honest trading with each auction. Unfortunately, online fraud is becoming an issue in the Internet auction industry as it is with online banking and cyber-shopping. In an effort to continue our good name and protect the buyers and sellers in the Lily Auction community, we want to clearly address our policy on fraud.

Fraudulent User Information

Please be advised that it is a violation of the law to make a bid using a fraudulent name or credit card number. It is our intent to prosecute fraudulent bidders to the fullest extent of the law.

Bid Shilling and Shielding

All auctions are subject to fraud. The bid process can be exposed to several dishonest practices. Bid shilling occurs when an individual schemes with someone else or creates a false identity in order to drive up the bidding prices on behalf of the seller. Bid shielding takes place when a buyer and partner artificially inflate the bids. This discourages other bidders from bidding. Then, at the last minute, the shielder cancels their high bid whereby his/her partner wins the auction with a lower offer.

Our stance on these practices is simple-- shilling and shielding will not be tolerated!

Mail Fraud

It is considered mail fraud to pay for an item, then not receive the merchandise OR to receive something other than you paid for. We understand that mistakes can happen and you should always try to resolve any problems directly with the seller first. However, if you feel that someone has committed an act of fraud, we encourage you to file a complaint with the Lily Auction as well with the U.S. Post Office and/or Attorney General.

Although the U.S. Mail Inspection Service cannot resolve routine business disputes between companies and their customers, it can act against a company or individual if there is a pattern of activity suggesting a potential scheme to defraud. Completion of this form is voluntary, but the more information that you enter, the better the Inspection Service may be able to help.

Click here to go to the U.S. POSTAL INSPECTION SERVICE Mail Fraud Complaint Form

The Lily Auction's Fraud Policy

The Lily Auction has zero tolerance for fraud! After investigating a complaint and the allegations are found to be correct, our policy is to suspend the user on the FIRST offense. We will also maintain a blacklist to chronicle the errant users.

Deadbeat Bidding

When any user bids in an auction, then wins the auction having bid higher than the sellers reserve as well as higher than any other bidder, and then refuses to pay for the item without an appropriate reason, this user will be considered to be in default.  Appropriate reasons would be illness or death in the family, and natural catastrophe such as earthquake, hurricane or tornado, or other catastrophic event. DO NOT BID ON AN ITEM UNLESS YOU INTEND TO  PAY FOR IT AT YOUR BID AMOUNT.  If a bidder defaults and provides the seller with what is considered an appropriate reason, it is still recommended that the seller, at his or her discretion, make a single NEUTRAL remark in the bidders feedback stating that the "bidder was unable to complete the transaction". There is no need to explain the details. If a bidder then develops a pattern of default, it will then be recorded. Any user found to show a pattern of deadbeat bidding in the Lily Auction will be suspended from both bidding and selling in the auction. Please review the Lily Auction Feedback Guidelines.

Policing Ourselves

Self-regulation is the best prevention against fraud. We will make every effort to enforce our fraud policy and we encourage our trading community to join us. Please don’t hesitate to contact the Lily Auction whenever fraud is the issue. If you don’t complain, there exists a possibility that we don’t know. Let’s all take a stand!

For additional information about fraud, please consult the National Fraud Information Center (


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Copyright Michael Longo, 1999 - present