Bid Rigging Definition
Bid rigging is a type of fraud that occurs when two or more businesses agree to submit false bids on a project in order to inflate the price. This type of collusion is often used in construction projects, but can occur in any industry where bidding is used.
Bid rigging is illegal in many countries, including the United States. The Sherman Antitrust Act makes it illegal for companies to engage in this type of price-fixing. Violators can be fined up to $100 million and face up to 10 years in prison.
