Chandelier bidding (also called “phantom bidding” or “bidding off the wall”) is when an auctioneer pretends to acknowledge a bid that doesn’t actually exist — usually to push the price toward the reserve. The phrase comes from the auctioneer apparently “looking up at the chandelier” for a non-existent bidder.
Most jurisdictions permit chandelier bidding only up to the reserve price — above that, it crosses into shill bidding territory and becomes illegal. The practice is controversial, and many modern auctioneers and platforms have abandoned it in favor of transparent reserves and openly stated starting prices. Online auctions cannot chandelier bid because there’s no physical room to reference.
The legal threshold is critical. Until the reserve is met, the lot will not sell — so a fake bid below reserve cannot extract money from a real bidder. Once the reserve is met (whether through real or chandelier bids), any further fake bid would force a real bidder to pay more for the lot — that’s shill bidding and is illegal. Auctioneers indicate the reserve has been met by saying the lot is “on the market” or “selling now.” After that announcement, every subsequent bid must be real.