Mock Auction Law and Legal Definition
Mock auction refers to a method of sale where cheap and low quality goods are sold at high prices by a group of persons who make public believe something that is not true. Mock auction is usually operated in street markets. In a mock auction, fake goods are sold to customers who believe that they are getting a good deal.
Mock auction techniques include selling goods that appear to be boxed or high quality branded goods. Actually, these goods are very inferior, cheap fakes, or are rejects which have serious faults.
Important features of a mock sale are:
(1) sale of lot to someone at a price lower than his/her highest bid for it;
(2) repayment of part of the price to the bidder;
(3) restriction of the right to bid to those who have bought or agreed to buy one or more articles; and
(4) offering or giving away articles as gifts.