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Can someone bid on an item that they or their company have donated at a charity auction?

Hi everyone,
I'm a little concerned that at an auction recently held the person who's company donated the prize that was being bid on was bidding on it. I also fear that this was to increase what the item went for. This in my opinion is quite unfair and rather wrong but can anybody advise me what the legalities of this situation is please?
Thanks very much

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