Does eBay use dishonest techniques?

Despite eBay's longevity, success, and popularity, I am still regularly asked whether or not eBay is an honest company or really simply a scam hiding behind an honest company's facade. Several things about the way eBay works seem to stimulate such questions: the bidding process and cases of rapid outbidding, final item costs versus initial bid prices, and the fact that many items on eBay are used.

So what's the truth here. Does eBay actually have "internal" bidders watching auctions and placing bids to ensure that no items sell cheaply? Do they actively misrepresent the prices of the items for sale there? Are they tricking buyers into paying "new" prices for "used" goods? Read on to find out.

See Also

     •  Don't Get Caught in Bidding Wars
     •  Why do I always get outbid?