By-Bidding Law and Legal Definition

By-bidding is an illegal practice of employing a person to bid at an auction for the sole purpose of stimulating bidding on the vendor’s property. The employed person is known as a by-bidder or puffer. The term simply refers to the bidding at an auction for the purpose of advancing the price, by a person who does not intend to buy.

By-bidding is also known as puffing.