Penny Auction Sites On The FTC Radar
 

http://www.commercialappeal.com/news...me-with-risks/

One of the most serious problems with some penny auction websites is the use of computer programs or human shills bidding on behalf of the website to drive up the price.

Sounds pretty scammy ...............

If you aren't the winner, however, you've probably lost the money you bid. In the above example, if you placed 199 bids at $1 each, you'd be out $199. Some auction sites allow you to buy an item by applying the amount of your losing bid to the retail price and paying the difference. You haven't lost your money, but you haven't gotten a deal either. :disgust

Well... the real problems are:


To "join" you usually have to buy a bunch of "tokens"... So lets say you join for $50. Now you have a lot of pennies. So you bid. But a penny and a token are not the same thing. So you might bid 1 token that is worth 8 pennies.

And what about your unused tokens? They collect interest on that cash along with everyone else's tokens...

Now if you win you might have big out $12. But the way it is set up a total of $500 was bid to win the iPad you got for $84 total on the system. That doesn't add up though. I know! That is why it is a scam...

So each sold item is sold for way more than the market value and then advertised to have been sold for much less. Some sites have computers or house accounts win the item and so everyone bid up the iPad to $450 which only shows $80 in the system and it was won by a house account. Walla... Nobody needs to receive an item and its like minting money!

seems like some jumped from the frying pan into the fire ...

one site that is sure to be in their line of fire is www.bidrack.com ive won so much from them but they jsut dont send the stuff. that simple