Buyer ethics

This section covers ethical rules that a buyer should always adhere to in order to achieve a successful auction. From the very beginning of the sourcing project, these rules should be outlined and communicated to the Sourcing Team and all suppliers.

1. The Buyer will communicate and consistently adhere to the auction rules as outlined in the RFQ.
2. The Buyer will hold all supplier information in confidence and shall not disclose it to third parties.
3. The Buyer will only invite qualified suppliers. This also means no “rabbits.” A rabbit is a tactic used by a buyer masquerading as a supplier in an attempt to drive bidding activity and price reductions. This has also been referred to as “phantom bidding” in the past.
4. The Buyer will communicate timely, accurate information regarding the business equally to all suppliers.
This includes any changes or corrections to requirements, specifications and timelines. The initial RFQ posting and any changes should also provide suppliers adequate time for review.
Open and honest communication is one of the foundations of a successful auction. This dictates that each and every supplier have the same unrestricted access to all relevant event information.
5. The Buyer intends to award the business and will not use the auction as a price discovery mission.
The Buyer will award the business only to those suppliers submitting bids in the auction. Interested suppliers cannot sabotage the auction process by submitting bids via email, fax or post. To be considered, all bids must be submitted via the online auction.
In situations where a reserve price is established, and no submitted bids meet the reserve price, a Buyer can choose alternative solutions. However, the reserve price standard and process must be clearly communicated to the supply base up front.
6. The Buyer will award the business based on quotes submitted in the auction.
The Buyer shall not participate in offline, after-the-auction negotiations. All bids must be submitted during the auction so that other suppliers are given the opportunity to respond.
In situations where a reserve price is established, and no submitted bids meet the reserve price, a Buyer can choose alternative solutions. However, the reserve price standard and process must be clearly communicated to the supply base up front.
7. The Buyer will communicate the award decision within the timeframe specified in the RFQ.
To add an even greater level of professionalism to the auction process, many organizations develop and publish a forum to allow suppliers to resolve ethical disputes with their buyers. In many cases, the e-Sourcing software provider can help manage the dispute process.
Source: 
http://www.esourcingwiki.com/index.php/E-Auctions_in_Sourcing#Buyer_Ethics