Bid rigging

Bid rigging,

Definition of Bid rigging:

  1. The Sherman Antitrust Act of 1890 made the act of bid rigging punishable by U.S. law. Bid rigging is a felony punishable by fines, imprisonment, or both. It is also illegal in the majority of other countries outside the U.S.

  2. Bid rigging is an illegal practice in which competing parties collude to determine the winner of a bidding process. Bid rigging is a form of anticompetitive collusion and is an act of market manipulation; when bidders coordinate, it undermines the bidding process and can result in a rigged price that is higher than what might have resulted from a free market, competitive bidding process. Bid rigging can be harmful to consumers and taxpayers who may be forced to bear the cost of higher prices and procurement costs.

  3. Illegal conspiracy in which competitors join to artificially increase the prices of goods and/or services offered in bids to potential customers. It may also include carving up the potential business between the conspirators.

How to use Bid rigging in a sentence?

  1. Bid rigging practices can be present in an industry where business contracts are awarded through the process of soliciting competitive bids, such as auctions for cars and homes, construction projects, and government procurement contracts.
  2. You should never do any bid rigging or you will get a bad reputation that you may not be able to overcome.
  3. Bid rigging is an illegal practice in which competing parties collude to determine the winner of a bidding process.
  4. We have been very carefully with our job bidding practices to avoid any chance of bid rigging on our part or the contractors.
  5. The bid rigging was suspected after the price reached unprecedented levels but future demand was forecasted to increase so we continued bidding as well.
  6. When bidders coordinate, it undermines the bidding process and can result in a rigged price that is higher than what might have resulted from a free market, competitive bidding process.

Meaning of Bid rigging & Bid rigging Definition