If I may, there are two separate issues here.

1. Is using a shill OK?

2. What action to take?

As far as ebay is concerned, if there is a specific policy against the activity, then it shouldn't be done. If it is, it should be reported.

But in general, Archie is right. If you are in an auction (any auction) and the item is in the range your willing to bid, then bid, if not, then don't. If the auction is condiucted in a way you don't like, don't participate. Feel free to make it known what conduct you don't like, but be prepared to prove it, if you do.

If I go to a regular everyday auction, and the bid is at 15, and I say 20, they don't treat it as 15.50. If you wanted the bargain, you should have said 15.50, and maybe you would have gotten it.

Now having said all that, and having been shilled before, I vote for castration. AS a response to the original question.