David,

With all due respect to your otherwise thoughtful and incisive
analysis, I have to take issue with the idea you seem to advance that
the only way new movie collectors will ever become part of the
hobby -- or see Bruce's or anyone else's auctions is through eBay. I
don't believe most people limit their web activities to eBay alone. In
fact I would hazard that for most of them, eBay is a side-activity,
something they engage in from time to time, not the penultimate
destination of their online lives. Let's not swallow eBay's publicity
whole without at least a dash of salt. There are search engines
integrated into virtually everyone's web experience and
www.MoviePosterBid.com does show up in the top 1 to 3  spot on all of
them except for the greedy "you've got to pay big bucks to be seen
here" Google site (where MPB's placement varies daily from number 10
to number 30 or so, depending on something I can't figure out).

But the point is, there are plenty of websites selling posters and
lots of ways for new people to find out about Bruce, MoviePosterBid
and other poster venues beside eBay. Perhaps I'm misinterpreting what
you're saying here, but if the advice you seem to be giving is that it
is worth  whatever price one has to pay and whatever arrogant and
unfair treatment one has to put up with in order to continue to list
on eBay -- well, that strikes me as simply incorrect, both on moral
and practical grounds.

-- JR

----- Original Message -----
From: "David Kusumoto" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Saturday, April 09, 2005 5:53
Subject: Re: [MOPO] Why I was suspended from eBay


Bruce:

It's always been evident that you are a complex man.

But as others have conveyed, once someone has the experience of
dealing with
you, he/she comes away with an imprint that feels etched in stone.
It's
mostly good.  Hence your integrity and honesty over the years remains
unquestioned by the far greater number of people who deal with you
than
those who haven't.  Just look at what you've written today, how
thorough it
is, how almost gut-spiilling it is in tone.  It confirms what your
fans (and
your microscopic number of detractors) already feel about your place
in this
industry.

I believe your take about the Phillip Wages issue, going back a few
years
now, mostly because it's always been in plain view, never hidden.  But
I've
never felt comfortable about it for obvious reasons.  You might not
have to
fire a good employee, but you need to get rid of the "issue," asap.
The
justifications, however well written and believable from both of you,
take
too long.

--------------

I think it's wise you are heavily weighing the possible consequences
of
kissing off the eBay monster.  Your business, your livelihood, the
things
you've innovated/invented have always been visible.  To have
everything
threatened by the loss of a potential audience of 125 million eBay
members
is vexing.

Most of your customers WILL follow you, but not all.  If growth and
stability matters, you may decide to work with eBay, regardless of
whatever
draconian measures it demands.  Why?  Because growing the business for
new
generations of customers remains important as old collectors leave.
This is
what eBay provides.  Notwithstanding your repeated announcements to
stop
selling "less expensive" contemporary posters, you see the long-range
value
of continuing to do so to younger customers who may become collectors,
hence
the reason you've not slammed the door.  That's my take on why you
still
feel, and rightly so, that you're gaining something even though you
remind
us you're losing money selling certain items.

However, if you decide to re-invent yourself again, I won't be
surprised.
Word-of-mouth does matter, even if you lose millions of potential
customers
who aren't otherwise mindful of poster collecting, who "accidentally"
come
across your high profile sales at eBay.  It's why you remain the most
successful entrepreneur in this field.  Regardless of eBay, you still
have
control over your destiny; you still get to "choose."

--------------

There's a tortured and eccentric part of you which remains an enigma
to even
your most ardent fans.  Most days, those tiny few who seek your
destruction
don't matter to you.  But on other days, they do bother you in a way
disproportionate to their impact.  This has always been fascinating.
Yet
from my experience, the eccentric and occasionally volatile are often
the
most innovative and successful in business.

If you decide to kiss off eBay, only a fool would bet against your
chances
of continued success.  Go back a few decades.  Almost everything
you've done
with your life has involved a higher degree of "perceived" initial
risk than
most would tolerate.  Some people have forgotten how "wild" some of
your
moves were at the time you made them.

Think of when you were a full-time poker player, a major force at
Christie's
in Manhattan, an independent auctioneer hosting sales in Los Angeles
while
sending out mail-order sales lists to customers, and then taking your
ENTIRE
business over to the internet, buying a city block, hiring employees
while
operating in little town in Missouri.

--------------

I remember writing a several-thousand word profile about you in MCW in
the
1990s that caused a few ripples.  Some thought it was too harsh.
Others
thought it was too kiss-ass.  Who cares?  In my view, it's not in your
DNA
to be a loser.  Some see you as a complex and arrogant winner, a
gorilla
within the slice of pie we call the poster collecting hobby.  A tinier
number regard you as an irritating blowhard and destroyer.  But you
see
things more simply when it comes to running a business and evaluating
risk.
The controversial stuff about you has never changed, stuff in my view
that
has more to do with your personality and the way your competitive
brain
works.

But by the end of the day, one must concede, if they've watched you
over
many years -- that by any measure, be it dollars, unit volume, or just
plain
goodwill -- the things you've done to ensure the continued happiness
of your
customers, employees and family -- far outweighs anything ill.  Hence
you
have been and will always remain a success.  Much has changed since
the
1990s, but you're still the same man.

-d.

----Original Message Follows----

From: Bruce Hershenson <[EMAIL PROTECTED]>
Reply-To: Bruce Hershenson <[EMAIL PROTECTED]>
To: [email protected]
Subject: Why I was suspended from eBay
Date: Fri, 8 Apr 2005 16:56:23 -0500

I have now talked to a high ranking eBay employee about my suspension
from
eBay, and the following is what I understand about why I was suspended
from
eBay on 4/6.

1) eBay added software recently that shows exactly what computer
placed what
bid on what item, part of a major new campaign designed to stop "shill
bidding" (there have been a few major sellers in the news who have
been
accused of this, and eBay rightfully considers this bad publicity for
their
site).  This software looks for bids that are placed on an account
using a
different eBay ID, but which are placed from a computer connected to
the
account bid on.  For example, if seller "XYZ" has a second eBay bidder
account of "ABC" and logs on to eBay as "ABC" and then places a bid on
an
item offered by seller "XYZ", then eBay's software will spot that the
bidder
and seller used the same computer.  An eBay employee then reviews the
bids
placed by bidder "ABC" and if he only bids on seller's "XYZ's" items,
then
the bids are often deemed shill bids, and any auctions from
either account are cancelled, and both accounts are suspended, without
ANY
notification to the users.  If eBay proves to have been mistaken, or
if they
accept that it is an innocent mistake, the accounts are reinstated,
but the
users are left to suffer the consequences of eBay's actions.

2) While this new software certainly may have located real "shill
bidders",
it has surely also "caught" employees of companies who have been
"guilty" of
placing one or more bids on items their company is selling, which has
resulted in many major eBay sellers having their accounts suspended,
even
if their employee only bid on a single item!  Of course, most actual
"shill
bidders" likely have other people bid for them from entirely separate
computers, so this software is far more likely to "catch" employees
who bid
on items intending to buy them, than it is likely to catch any actual
"shill
bidders".

3) As I have explained, this eBay software discovered the account Phil
Wages
used to bid on some of my items each week.  Phillip began to bid on
this
account (owned by a friend of his in another city) when an eBay
employee
told me it didn't matter if he bid from a friend's account, as long as
he
didn't bid from his own account.  Phillip sometimes bid from his home,
but
also sometimes from the computer he uses at work, which is the very
same
computer from which the auctions are  submitted.  He bid solely on
items he
was trying to buy as a collector, and since he has limited
finances, he mainly bid on inexpensive items, and he usually won a
small
number of items (between one and twelve some weeks, and NONE many
weeks),
but he placed many hundreds of bids over the past years, as has just
about
everyone who regularly bids in my auctions.

4) Phillip is virtually exactly the same as any other bidder on my
items.
He gains the tiniest of advantage by being my employee, which is that
he
does not have to pay shipping for his purchases, but neither does
anyone
else within driving distance of here.  He has no way of knowing what
anyone has bid on any item, for no one here has that knowledge (only
eBay
has that information).  Phillip COULD physically examine each item
before he
bids on it (as could anyone within driving distance), but the large
images I
provide make that unnecessary, and in actuality he bid just as
everyone else does, from looking at the pictures and reading the
description.

5) Phillip purchased a few hundred items for around six thousand
dollars
over the past years (during which time I sold ten million dollars of
posters).  I could document this, but I know there is no point.  Those
who
believe what I say do not need to see it, and those who want to think
I am
lying would surely say I have produced false information.  Either
believe
the truth or don't.  But everyone should ask these questions.  If I
had him
bidding intending to cheat people, why bid on a few hundred
inexpensive
items for a few thousands of dollars over a period of years?  Why did
he
not bid on LOTS of VERY expensive items?  Is it not far more likely
that the
truth is exactly what I say it is, that he bid on those items to buy
them
for his collection, and that if I did do anything wrong, it was solely
poor
judgement on my part (caused by listening to the advice of an eBay
employee).

6) But I have said that Phillip also bid on a few expensive items, but
that
was because he was placing bids for other collectors.  Why?  Because
when I
started my major eBay auctions, I required all bidders to register
with me
separately, giving full credit information.  Due to eBay's antiquated
software, this "bidder allow" process could only be updated once a
day.  So
24 hours prior to the end of the major auction items I had to stop
taking
new registrations.  The first major auction, around ten people (who
were
good past customers of mine, and who had credit information on file)
contacted me on the final day, and asked if they could register, as
they had
just learned of the auction, and I had had to tell them they were too
late.
I called my eBay representative and asked if I could set up an eBay
account
called "absentee bidder", but he said that sounded like a bad
idea.  He suggested I get someone else to place the bids.  I then had
Phillip sit on the phone with those people and bid for them from his
account.  He bid solely on items those people instructed him to, items
they
were trying to buy as a collector.  He (and the people he was bidding
for)
had no idea of what anyone else was bidding.  Sometimes those people
won and
sometimes they lost, and in every case they paid for their purchases
when
they won, and their items were sent to them.  This process was
repeated over
the next major auctions, solely for those who were past
customers who did not register in time.  Again, I could document this
(and
one of those Phillip bid for has offered to post full information of
what
occurred, and I have no doubt every such bidder would do so if I asked
them
to), but I know there is no point.  Those who believe what I say do
not
need to see it, and those who want to think I am lying would surely
say I
have produced false information.  Either believe the truth or don't.
But if
those bids were intended to cheat people, why place them from my
office?
Why tell those who asked me that I would have an employee place a bid
for
them because they had not registered in time?  I am not a stupid
person.  If
I had some grand scheme to cheat people, why do it from a computer at
my
work, and with a small number of bids that totalled thousands of
dollars,
and not thousands of bids totalling millions of dollars?

7) The employee at eBay who saw the bidding on this account solely saw
many
hundreds of bids on eMoviePoster.com's items over a period of years,
and
concluded that this must be "shill bidding" (even though thousands of
my
customers have placed far greater numbers of bids, for significantly
far
greater amounts of money).  Without giving me a chance to explain what
happened, or contacting me in any way, he closed my current 1,500+
auctions.
  I know many of you find it impossible to believe that eBay could do
this
without first giving me one or more warnings of some kind, but I
guarantee
you that was not the case.  Regardless of my 160,000 sales on eBay,
with
110,000 positives and 12 negatives (likely an eBay record), he closed
down
every auction without any warning (other that calling me 30 seconds
before
it happened, as a "courtesy"!).  In addition, he looked at my account
and
saw many minor infractions of eBay's many rules (VERO violations,
selling
items in the wrong category, etc) and he decided (on his own) that I
should
be permanently suspended.  In effect, I was tried and convicted and
sentenced, and I was not even notified of my trial!

8) I am now in phone contact with a different eBay employee.  I have
explained what occurred.  What I am potentially "guilty" of is taking
an
eBay employee's advice four years ago, and having my employee bid on
items
using a friend's account, and also having him bid for other people who
could not bid in my major auctions due to eBay's poor software (again,
taking the advice of an eBay employee).  I helped people bid on
posters they
wanted to win!  I NEVER in any way caused anyone to bid on any item
with the
intent of raising the price of that item, and I am sure that none
of my employees ever did this.  If I indeed did break eBay's rules, it
was
not by "shill bidding".  If it is against eBay's rules for an employee
to
bid on my item's (even through a friend's account) then I did break
that
rule (although I was following the advice of an eBay employee).

9) What is a fitting "punishment" for breaking this rule?  Many people
might
say I should have to agree to ban all employees from ever again
bidding on
any of my auctions in any way, and that I should be given a "second
chance"
to sell once again as I have for five years.  I have received hundreds
of
e-mails suggesting this.  This makes "sense" to just about everyone I
have
sold to.  After all, most poster collectors are painfully aware that
there
are many major poster sellers openly selling fakes as originals on
eBay, and
eBay does nothing to stop this, in spite of hundreds of complaints
from
collectors and dealers.

10) Why am permanently suspended for what I believe can be fairly
described
as a relatively minor infraction of their rules, and why am I being
singled
out in this way?  Is it not possible that is it is because I have been
an
outspoken critic of eBay for years?  Several months ago I ran an
auction
for a "mystic" pizza, that urged eBay to qualify their bidders.  The
past
month I was a frequent poster on a "super-PowerSellers" discussion
board.
My last post there said that eBay is more concerned with silencing
their
critics than in fixing what is wrong with their business, and
suggested they might adopt a new policy, throwing off everyone who
dares
criticize them (like me).  It seems they have adopted this new policy!

11) I will wait a few days to see what eBay wants from me in order to
be
reinstated, and then decide whether to appeal their decision, start my
own
site, or list through a different site.  I am afraid that eBay will be
basically asking me to PROVE that I never instructed anyone to place
bids
for the purpose of inflating prices, and I don't know how I can prove
that I
DIDN'T do something wrong (that takes on similarities to a Kafka
novel).  If
they make it clear they are looking to make it very difficult for me
to
return to their site, then I will explore my other options, and of
course I
will post my decision here.

12) I KNOW my auctions are the most honest movie poster auctions ever
held.
In most other major auctions the owners of the posters have either
direct or
indirect access to the bids placed by many collectors, and you have
depend
on their honesty.  In my auctions, I don't know what anyone is
bidding, and
I sell thousands of items at a time.  Even if someone WANTED to "shill
bid"
under these conditions, I don't see how that could reasonably be done.
But
I absolutely state that every bid placed in my auctions was placed by
someone wanting to buy that item at that price.  Anyone who EVER was
the
high bidder and did not honor their bid on even one item was
permanently
banned from bidding in my auctions.  I am sorry if my action of
helping
Phillip (and some late registrants) bid clouds this issue in anyone's
mind,
but the simple truth is that NO shill bidding every occurred with my
knowledge in any of my auctions, and that is one good reason why my
auctions
have so many bidders (of course the honest descriptions and quick and
careful packing don't hurt either).

Thanks to the many hundreds of collectors and dealers who have called
me or
e-mailed me with their support (including all of my foremost customers
and
consignors).  There HAVE been a very small group of those who have
taken
delight in my misfortune, but these are the very same people who were
my
critics prior to this, so their response was certainly predictable.

I firmly believe this entire experience may well prove to be a
blessing in
disguise.  Certainly the outpouring of support from my friends in the
poster
collecting community already more than outweighs the negatives of
this!

I will keep you posted of further developments.

Bruce

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