Are Online Penny Auctions Actually Gambling?

from the here-come-the-regulators... dept

Tue, Dec 30th 2008 5:47pm — Mike Masnick

A few weeks back, we wrote about a site that seemed to have modified the old "dollar auction" concept and created a borderline evil business plan that would get plenty of people to pay money to "bid" on way underpriced goods. People keep bidding, because the costs seem so low -- but since everyone has to pay to bid, the companies ends up making a ton of money -- often many times the actual cost of the product. Basically, the company and whoever "wins" the auction are likely to make out okay -- while every other bidder loses. Apparently, there are a number of such sites doing similar models, and the UK government is noticing that it's pretty similar to gambling and probably should be regulated as a gambling site.

The reasoning is that people are paying money and might not get anything back for it -- which makes it akin to gambling. However, depending on how these sites are run, it's not as though the results are a real gamble -- it's still about whoever bids the highest for a good, so it seems like a stretch to call it gambling. It is a dumb move to get involved in any of these auctions in the first place (in many ways, worse than gambling), but that doesn't necessarily mean that they should be regulated like gambling sites.

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Filed Under: dollar auction, gambling, penny auctions

103 Comments

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Trevlac, 30 Dec 2008 @ 8:14pm

Gambling doesn't have anything to do with a necessarily random chance that your investment will not pay off. Like with Blackjack, gambling can be in a highly controlled environment. I think the description of the site certainly constitutes gambling what with the risk versus reward system and it's definitely a zero sum game. Now whether or not it should be regulated is a different deal. I'm not sure I'm qualified to answer that.
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- Anonymous Coward, 31 Dec 2008 @ 5:02am
  
  Re:
  You make a good point. E-Trade should similarly be regulated as a gambling site -- though these days, it's not much of a gamble; everyone loses.
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  - Shohat, 31 Dec 2008 @ 5:27am
    
    Re: Re:
    You're an idiot.
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Anonymous Coward, 30 Dec 2008 @ 10:32pm

Any one who buyes into that stuff is frikkin retarded.

Speaking of retarded. I LOVE LAMP
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Shohat, 31 Dec 2008 @ 12:14am

Howdy
A) I LOVE LAMP

B) This is actually a patented method of auctions that was "invented" in Israel around 8 years ago. It was quickly outed for being exactly that - gambling. The firm's name was Maxprice, and I assume their method of doing business is still considered legal in most countries.

Smooches
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- thinkorsink (profile), 21 Oct 2012 @ 10:38pm
  
  Re: MAXPRICE OR
  MALPRACTICE?
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gene_cavanaugh, 31 Dec 2008 @ 8:28am

Penny auctions
I normally agree with Michael, but in this case he is the one with his head in the sand.
In any gambling endeavor, there is someone who wins. Often, it is the person who wagers the most, driving off the other gamblers. Nothing "different" here.
In the ultimate sense, this is no different; it is similar to "liar's poker" and similar games - it is gambling.
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John A., 15 Jan 2009 @ 4:35am

Gambling? Get your facts straight.
It´s nothing like gambling.

You simply pay a small fee to be able to participate in the auctions.
Instead of charging users a "monthly fee" they charge them based on how actively they use the service. So for each bid you place you are charged a little fee.

Running a site like that costs money so it´s obvious they need to generate revenue from somewhere. They all have limits, only allowing ADULTS to participate, so if you don´t want to participate, then DON´T!

The UK gambling commission actually took a look at these sites and concluded that they are not similar to gambling and that they are infact real auctions with a funny twist.

Now, I´m off to win a new TV for 6£!
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- omar, 1 Nov 2010 @ 12:22am
  
  Re: Gambling? Get your facts straight.
  When the seller makes upwards of 100% of an item's retail price, it is way over what anyone would consider an ethically gained profit margin.
  
  Example:
  
  Retail price = $1000
  Price per bid = 70 cents
  Bid increments = 2 cents
  
  Calculation of where the auction site breaks even (with normal over the counter merchant sales)
  
  (1000 / .70) x .02 = $28.56 (rounded off auction price listed)
  
  Even with a winning online bid of $100, the auction site has made a profit of over $1500. That is over 150% profit. Only the winner makes out ok. everyone else taking part in the auction gets fleeced (like a casino where the house always wins).
  
  ((100 - 28.56) / .02) x .70 = 2500
  2500 - 1000 = 1500
  
  Don't take part. Chances are many lose sight of the actual dollars behind the "funny" auction items and don't do the math of how fast their bids wipe out, and what the auction houses actually make.
  
  These are by no means "Penny auctions".
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- Whatever you want it to be, 28 Jan 2011 @ 7:35pm
  
  Re: Gambling? Get your facts straight.
  "You simply pay a small fee to be able to participate in the auctions.
  Instead of charging users a "monthly fee" they charge them based on how actively they use the service. So for each bid you place you are charged a little fee."
  
  And in that statement you said it all. IT IS GAMBLING lol.
  Whether it be regulated as such is a different story.
  
  Whether you pay a membership fee or a small fee to bid. It's still the same as dropping coin in a slot machine hoping to win the jackpot.
  
  At least at casinos they give you free drinks. At these auction sites you get nothing but an email that calls you a loser lol.
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  - thinkorsink (profile), 21 Oct 2012 @ 10:41pm
    
    Re: Re: Gambling? Get your facts straight.
    There are plenty of sites that will let you bid for free try www.bidz.com you don't have to pay to be a customer!
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  - thinkorsink (profile), 21 Oct 2012 @ 10:45pm
    
    Re: Re: Gambling?
    Soon you will be charged a fee to stand on a street corner in the snow waiting for a bus! LOL
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- Whatever you want it to be, 28 Jan 2011 @ 7:35pm
  
  Re: Gambling? Get your facts straight.
  "You simply pay a small fee to be able to participate in the auctions.
  Instead of charging users a "monthly fee" they charge them based on how actively they use the service. So for each bid you place you are charged a little fee."
  
  And in that statement you said it all. IT IS GAMBLING lol.
  Whether it be regulated as such is a different story.
  
  Whether you pay a membership fee or a small fee to bid. It's still the same as dropping coin in a slot machine hoping to win the jackpot.
  
  At least at casinos they give you free drinks. At these auction sites you get nothing but an email that calls you a loser lol.
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Roddy Rod, 28 Feb 2009 @ 11:14am

The penny auction sites keep popping up. The newest one is ZOOZLE http://www.zoozle.com/
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- 5050s, 19 Apr 2009 @ 9:01pm
  
  Re: check it out
  This is the only site that gives you 50% of your bids back if you win, and nothing goes for over 50 cents!! check it out
  
  http://www.5050auctions.com/
  
  They're giving away a great special!! 50% Extra Bids FREE!!
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Kelly, 19 Mar 2009 @ 9:45am

The site that "Roddy Rod" is promoting seems to be a complete scam site. Just google it and find all the bull**** around it.

I do however completely 100% agree with John A´s comment about it not being similar to gambling, it´s simply a paid auction service.

I would suggest you use some of the legit penny auction sites around.
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- Jeff, 26 May 2009 @ 9:07pm
  
  Re:
  zoozle is totally NOT a scam, google it and READ the info that THEY put out warning about other scam sites. They are actually one of the few legit penny auction sites around that do not use bots to bid their auctions.
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  - thinkorsink (profile), 21 Oct 2012 @ 10:43pm
    
    Re: question
    have you actually signed up and tried to bid on stuff and won can you tell us more about your experience with it? thanks!
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joseph oxtote, 19 Apr 2009 @ 8:54pm

not really...
I have to agree with john a...This is simply a different way to bid at an auction. Gambling would mean it was up to chance if you won an item or not, and having won several items on sites like swoopo I have to say that there is much more than chance involved. You have to watch how many others are bidding, you have to watch the clock, and most of all you have to have the stamina. This is not similar to picking a horse, or betting on black in the slightest. You win the auction, just as in any other auction, by being the highest bidder.
There's a good new site I just saw called 5050auctions.com with a really good price point, and where they give you half your bids back if you win. That means that if you invest in a couple hundred bids, and get your price point down to say 60 cents, spend those bids on an xbox or ipod, or just about any other cool little gizmo we like to play with, then you picked it up for really cheap. True, if you don't win, your out the bids, and that sucks, but if you do win, then you just picked up a bargain unlike anywhere else. Check em out: http://www.5050auctions.com
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http://beta.bidsaver.com, 1 May 2009 @ 1:24pm

re: check it out real auction site http://beta.bidsaver.com
Gambling or Auction?

RISK does not make gambling...everyone seems to confuse that. Now the legal definition of "gambling" varies by locale so in some places it MAY BE "legally" considered such.

Most people will realize its just an auction, a penny auction is what gets people attention.

The one that seems the most legitimate to me is http://beta.bidsaver.com

I saw and heard the testimonials of people and it looks like everyone that wins is getting GOOD items for 60-70% off!

Plus they ship to USA AND Candada. This is a TRUE auction / penny auction website.

check them out Bidsaver.com
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Bill Bonner, 5 May 2009 @ 12:35am

Actually no
I tried a whole bunch of sites and the only one I won anything on was www.bidnwin.me. After spending a lot of money on the other sites I happened on to this one to find "easy" wins like total item cost of 1/3 to 1/2 of retail price. Good savings if your in the market for the items there.
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- D.L.Fritz, 15 May 2009 @ 1:53pm
  
  Re: Actually no
  I just won like the last 4 auctions they had. they have not listed anything to sell since. they accepted my payments for the 4 items I won. I got stupidly cheap deals on them so I am wondering is this company legit? has anyone actually gottne the items they won bids on? and how long did the shipping take?
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auction watcher, 6 May 2009 @ 9:10pm

penny auctions
I would DEFINITELY have to agree with Kelly.
The site Zoozle.com is a complete scam and also seems to be a huge rip-off.

I have been registering with and watching these sites a lot trying to see which ones seem legit and which ones seem like scammers.

Zoozle came out immediately after another called Bidkong.com, and it was surprisingly similar. Come to find out the designer of zoozle copied as much of the other site as they possibly could get away with. The creator of zoozle obviously has zero creative abilities, and only seems to be out to try and make a quick buck. User/bidder BEWARE!

On the other hand, there are a few of the sites out there that do seem to be a little more legit and less self involved though.

Ironically, I have found that the site (Bidkong.com) that zoozle has been copying, so far seems to be the best for at least a few reasons.

1)they offer the best prices for bid packages. Price/bid - as low as .55 per bid.

2)they don't seem to be as greedy and concerned with making profit all for themselves. They actually donate a percentage from the winning bids to a charity for autism. (which btw, I noticed that zoozle added that to their site soon after also. Go figure!) and...

3)I noticed that they also offer tips to help their bidders, which NO ONE else does. This just shows me that they actually seem to have a genuine interest in helping their bidders understand and win.

Also, I purchased a starter package on Bidkong.com, not too long ago and as of yet have not won anything, but in all fairness I haven't really been playing with the intention of winning. More just feeling it out really. Anyway, I had a question on a specific item that was up for bid so I contacted them, and received a reply back within less than 24 hours. I have nothing negative to say about them yet...

I've gone through almost every new penny auction site that has popped up recently, and in my opinion, this one seems to be one of the best looking and put together. Based on the site itself, and the communication and response time I received when I had a question, I would say that this site seems very professional and definitely worth checking out.
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- Kevin James, 23 Jul 2010 @ 4:20am
  
  Re: penny auctions
  Hello I would just like to say that i use to work for bidkong and they were legit the reason they are not around anymore is because they lost alot of money by people winning there merchandise for such low cost.
  
  I also know they are coming back with a ebay style auction site but of course it will be alot cheaper than ebay and they will not be charging a percentage of the sale. I think they will be opening the first of the month Aug 2010.
  
  Thanks
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Bidder, 7 May 2009 @ 9:00pm

You people are insane
Bidkong, bidsaver and bidnwin are all scams. Omg, I cant believe that you have actually gone in there and watched there auctions and didn't think they had autobidders. It is so obvious a blind man can tell. 5050 auction is probably one of the better ones out there. Thats all I have to say.
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Jason, 9 May 2009 @ 6:55pm

Wow, just wow
I think most all of these sites use autobidders, sure there will be one or two you can win on but you know these sites are using autobidders.

I think the best way to use these is by using new penny auction sites, they have the least competition.
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- Danille, 12 Aug 2009 @ 6:22am
  
  Re: Wow, just wow
  Ofcourse Jason..
  whenever i bid for any product.. and ive checked the no of people online before i bid..
  it automatically increases the bid amount..
  and the user it shows isnt even online at times!!
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  - thinkorsink (profile), 21 Oct 2012 @ 10:49pm
    
    Re: agree
    The same bidders are all bidding on the same products for every auction. this is totally illegal to have autobidders.
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Chripy, 9 May 2009 @ 6:57pm

New sites
I found a new site www.bidzooks.com and they guarantee they aren't using autobidders.

They must not be because there auctions start @ $1 and have been ending @ $1 and some change.
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- inernetchris, 12 Jul 2009 @ 5:42pm
  
  Re: New sites
  I can attest to the fact that bidzooks isn't using autobidders. I have nothing to do with the company, but the owner is a good friend. He has been loosing his pants and getting integrity in exchange. Their company is currently in the hole, but they hope to change that using "ethics". They hope enough people will win things for little to no bids that it will increase their traffic. For his sake I hope he is right. It's an expensive venture from the sounds of it.
  
  Just my two cents :-) no pun intended.
  
  Chris
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  - unknown (profile), 17 Jul 2009 @ 8:51am
    
    it is gambling
    There are a couple things that make it gambling. First the outcome is uncertain. And winning does depend on factors that are beyond the control of any one participant. Instead of the "luck of the draw" as in a card shuffle, you do not know who your competitors are, or how many there are, or how much they are willing to spend, or when they will give up, or what their skill level is. Skill and strategy can help: just as there are good poker players, there are some users who win more than others. But this is just as uncertain and addictive as most OTHER forms of gambling, and almost everyone involved loses, which is the ONLY way any of these sites can be profitable.
    
    In addition to the fact that this really is gambling, though thinly disguised, consider that some of these sites ("the house") use a variety of methods to maintain their edge over users. Some site are blatantly abusive and run auto-bidders to act as shills. Others create rules that guarantee their profits in ways that are less obvious, but still end up reducing the chances of getting a real bargain after the cost of bidding is factored in. It is also a common practice to display items for auction with inflated values to encourage lots of bidding. The fact that some of these sites will not allow refunds is also a sure giveaway that there is no interest in customer service, just exploitation.
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    - Weronika, 10 Sep 2009 @ 8:15pm
      
      Re: it is gambling
      Hi, I do not agree that penny auctions are gambling. The fact that the outcome is uncertain does not constitute gambling. Neither does the fact that you do not know your opponent's skill level. This is as true of penny auctions as marathons. I think that any "house" using shills should be prosecuted. It is a shame that these bogus websites can continue to operate and basically steal from people. We run an honest operation. We try to be as responsive to our customers as possible resolve any issues and refund bids if the situation requires it.
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Craig, 10 May 2009 @ 12:10pm

Zoozle is no scam
I am the owner of Zoozle.com and think the owner of BidKong has a grudge against me since we both got our software from FeistySites.com and their graphics guy was lazy and used the same "Bid" button on our designs. I take offence to his rude accusations above. I have never and will never employ Auto-Bidders on Zoozle.com. It is a straight up, honest penny auction process.. unlike BidKong, which I've clearly seen running auto-bids. (sometimes it's pretty obvious)

Our bid credit price is actually cheaper than any other site, at only 50 cents.

If you google Zoozle + Scam, you will find this TechDirt article and our press release warning about scam sites like BidKong, GrabABid, and some others using a non-modified FeistySites.com penny auction script. (see our blog for more details on this) "Kelly" above probably didn't read the article.
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- Sure, 16 Dec 2009 @ 9:25am
  
  Re: Zoozle is no scam
  Sure you are not a scam. How about after 5 weeks you still have not shipped out items? Your site is controlled by about 7 or eight people that win everything and you are getting crushed. But not really because you are collecting bid money and not shipping. Me, we, everyone will find you.
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2squirts, 14 May 2009 @ 7:31am

real ones and scammers
This is what I do know. Most sites do use 'bots', especially on high end items. The ones in my opinion to Stay Away from (unless you like winning bid packages & $10 gift cards) are:

SCAMMERS-
5050 auctions (same scammers as bidstick)
bidstick
centy24
pennycave
fantasticbid
rockybid
bidcactus
kbid.co.uk
grababid
bi degg
prestigebids
bidray

It takes a while to be able to identify bots from people (rookie mistake) because some people do bid like bots! haha.
Some advice before you throw your money away on the above sites. Go to a site, ACT like you have 50 bids, click the bid button when you think you should bid, use 50 pretend bids, see what happens, betcha you just saved $50.

High end items go to bots or sometimes a company will let it go to a real person only because that item has cycled through several times with their bot winning it, thus having a profit on it.

Low end items will go to real people most of the time.

A List of Real Sites? Well, I can't give out that and keep competition low. But the above info should keep some money in your pocket. Peace and happy bidding.
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- Anonymous Coward, 30 May 2009 @ 11:51pm
  
  Re: real ones and scammers
  What site do you work for, apart from pennytickbids.com
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  - 2squirts (profile), 9 Jun 2009 @ 8:51pm
    
    Re: Re: real ones and scammers
    I think pennytickbids is a ripoff. So much that I can't chat on their site anymore because of speaking the truth. I don't work for any auction site, do you? Where have you bidded lately? You can find me if you look. Maybe at yottabid and zoozle today in their past auctions catagory. Thanks for your time and Happy Bidding.
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- 3squirts, 31 May 2009 @ 12:14am
  
  Re: real ones and scammers
  2squirts works for an auction site, and bad mouths all others, you just cannot believe any of his comments, how can you pretend to bid, his last comment says it all he does not want you to bid on any site to allow him to WIN
  
  No other bidders he has a chance of winning what a SQUIRT
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  - 2squirts (profile), 9 Jun 2009 @ 7:38pm
    
    Re: Re: real ones and scammers
    You are the joke. I do not hide behind a anonymous '3 squirts' ID. Haha. I bid on auctions, not work for them. Unlike you, I have proof of auctions I have won and lost. What is your bidder ID? I don't expect you to actually have one. But if so please share. Also. All of my statements are true and can be verified. Can yours?
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- 2squirts (profile), 9 Jun 2009 @ 9:40pm
  
  Re: real ones and scammers
  I may need to pull Rockybids from the list above. More research is needed though. My associates and I are working to bring a website where reliable information can be found on many auction topics and sites.
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kathi, 15 May 2009 @ 4:50pm

new auction
be sure to check out penniesrus....sure to beat all prices....coming soon!!!!!!!
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- D.L.Fritz, 16 May 2009 @ 2:08pm
  
  Re: new auction
  when will this site be launched? will it be .com.net or what?
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winn0o0o, 23 May 2009 @ 3:44pm

BEWARE OF SCAM CHEAPOBIDS.COM
CHEAPOBIDS.COM LOOKS LIKE A TOTAL SCAM I'm OUT $60 bucks we need to report these scammers!
Same bidders, same winners all the time... this car auction is a total scam too.. look @ the names of the constant bidders
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- M. Jones, 25 May 2009 @ 11:56pm
  
  Re: BEWARE OF SCAM CHEAPOBIDS.COM
  I won an iPod on CheapObids.com for $5 and I got it within a week.
  
  Maybe they have the same bidders because not a lot of people don't know about the site yet, but when they sign up they are like you trying to win the same featured car auction.
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Albert Berger, 24 May 2009 @ 11:27am

Definately legit
I have won so much stuff from 5050auctions it's ridiculous, so i don't know what 2squirts is talking about. I've also received most of it w/in a few days. I don't know if it's because they're new, or they haven't gotten it down yet, or what...but I've taken care of most of my Xmas shopping literally for pennies on the dollar. I think strategy is a big part of it. I think the mistake most people make, and I noticed it from some of the posts, is that they buy 20 bids or 10 bids, and then they try to win ipods and tv's and the big stuff. But you have to realize that there are hundreds of other people just like you trying to win something for nothing, literally, because they give you 5 free bids just for signing up. So how many think, hey, I need to get lucky anyway to win, so I may as well go for the big stuff. Uh-uh, believe me, people are watching the big ticket items just like you are. To win them, you want to have staying power. That's why I buy in bulk. I wait for a 50% free bid special and stock up on bids...then it's literally just a matter of outwaiting and outbidding your opponents. In some sense I like swoopo's bidbutler because I don't have to sit in front of the computer all day...but on the flip side, I know that on a site like 5050 all I have to do is wait out the other guy...and believe me it pays HUGE dividends. Best of luck to you, and if I see you on a site, don't mess with BigAl
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- theBUBBs (profile), 7 Jun 2009 @ 9:52pm
  
  you keep beating me!! haha
  HEY!, it's BigAl!! So i've been on 5050auctions for about 2 weeks now and I really want to win the nintendo wii for my daughter for her birthday, but the last 2 that i bid on, you beat me and won both...i was wondernig if you would be willing to maybe sell one to me for say $40? I have a premier paypal account. Let me know man, my email is usmcbubb@yahoo.com THANKS BigAl!!!
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  - 2squirts (profile), 9 Jun 2009 @ 9:01pm
    
    Re: you keep beating me!! haha
    Did bigAl ever contact you? Or u think he likes collecting wii's? I'm not so sure if he is a real bidder. Do you know?
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BUZZINBOB, 2 Jun 2009 @ 5:44am

penny auctions
I am not here to hide who I am. I am the owner of buzzerbidz.com. I have read lots of comments saying that these penny auction sites are making money hand over fist. Let me tell you it is no walk in the park to get one of these sites up and running. These take countless hours to set up and run. We have to find suppliers, ship out items won, search for new items to list, answer e-mails, help people with accounts, Learn how to read scripts and the list go on and on. I don’t think that most people realize what goes into these auction websites. Read the example above from anonymous: If a person bids $15.00 on a $299 product and is the successful bidder the penny auction pockets $1,500. But, would if the product sells for 34 cents? Then the penny auction would make a whopping $34 losing $265. And take into consideration that buzzerbidz give bonus picks at the end of each auction to the successful bidder to receive additional bids and no one counts the free bids that were placed on certain items. This also takes away from profit. These auction’s are a lot of work to run and it is like any other business. (to make a profit) Take your average fast food burger joint. Do you really think that it cost $1.20 for them to make a large soft drink? Think again! It only costs about 5 cents netting them $1.15 per soft drink. If they sold 500 of them a day, they would make $209,875.00 per year! And thats just on soft drinks. Granted some people will not always win, but if you are fast enough to be successful even if you put in $12.00 on bids and won a playstation for $15.00 it would cost you $28.00 for a brand new playstation valued at $350.00. We all have been at a carnival and tried to knock the bottles down to win a prize. Some of us won a huge stuffed teddy bear and some of us won a plastic spider ring. Some spent a $1.00 to win the bear and some spent $20.00 to win the ring. We as humans love entertainment and this is what buzzerbidz is all about. Meeting new friends while obtaining heart pounding excitement while shopping for things you want. I am just tiered of hearing all of the negative comments about these penny auctions. If you like them, then play. If you don’t then don’t play. It’s that simple! I just felt that I had to throw in my 2 cents worth! ( no pun intended)

President Of Buzzer Bidz Inc.
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- Baseball Bat, 19 Dec 2009 @ 6:51pm
  
  Re: penny auctions
  BUZZINBOB WHEN I FIND YOU IN RACINE,WI I AM GOING TO SMASH YOUR SKULL IN OVER THE MONEY YOU TOOK FROM ME AND OTHERS WHEN YOU SHUT DOWN THE BUZZERBIDZ SITE. ONE BY ONE, I WILL FIND THE RIGHT ROBERT SORENSON. YOU CANNOT HIDE FOREVER AND LAWSUITS WILL FOLLOW.
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2squirts (profile), 9 Jun 2009 @ 9:17pm

Auction site information
Everybody should visit the digg below
http://www.digg.com/d1ql0R?e
Happy Bidding.
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2squirts (profile), 9 Jun 2009 @ 9:33pm

Correct Digg Link
http://www.digg.com/business_finance/Scam_Penny_Auction_Sites_Bots_Shill_Bidders_and_Theives

Plea se comment when you get there. Even if it's just your bidder ID. Thanks!
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Joshsilver (profile), 14 Jun 2009 @ 12:38am

penny auction watchdog site
You may want to check out http://www.pennyauctionwatch.com it has a directory as well as information and forums where you can share your experiences with penny auctions.
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- JustFoundThisRecently...HowIronic, 17 Feb 2010 @ 2:35am
  
  Re: penny auction watchdog site
  "Exposing PennyAuctionWatch.com"
  "Let's look at the post from today, Sep 10, 2009. I think it's blatantly obvious that this website is exchanging paid sponsorship for shameless promotion on their 'Watchdog' website."
  http://bidcactusisascam.blogspot.com/2009_09_01_archive.html
  
  Also on their site:
  
  Aug 28, 2009
  "PennyAuctionWatch.com owner is a convicted fraudster"
  "Apparently, the main owner of PennyAuctionWatch.com has been convicted of defrauding people by using "phishing" techniques.
  He was convicted by a court in California approximately 3 years ago and has since been released from a federal prison."
  http://bidcactusisascam.blogspot.com/2009/08/pennyauctionwatchcom-owner-is-convicted.html
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None, 22 Jun 2009 @ 9:02pm

penny auctions
look man i have been playing on bidray.com for a month now and i spend total of 100$ from my own money , and of course i won TomTom GPS, flash driver 16 GB , all in one printer, camera and magazines for a year. so yh i lost money but i made alot more by winning these stuff
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Dan, 27 Jun 2009 @ 9:49pm

penny auctions
I've just been turned on to penny auctions after following a swoopo link. Then after i started researching them i noticed there were a bunch of other sites like them. I did some digging "literally digg .com lol" and there was a post about which sites were good and which weren't as far as getting your moneys worth. one penny auctions site that I found to be pretty good is www.swipeitup.com just look at their past auctions and you can see they are consistently losing money lol. Which means a great deal for us!
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Penny Auction Watch, 29 Jun 2009 @ 1:31am

Stop scam penny auctions!!
Hey Guys, Check out Penny Auction Watch We need REAL bidders of penny auctions sites to collaborate and warn others of scam penny auctions since penny auctions are not yet regulated. Thanks!
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Brian., 19 Jul 2009 @ 9:00am

Does anyone know if BidCactus is a scam? Anybody receive anything? I won a barnes and noble $50 gift card using 5 bids, *luck* and they said they will ship it in 14 days. It's 11 days and I haven't gotten a shipment email. I have asked why, and they said should be shipped because I was last of the fufillment cycle. I don't know I hope I didn't waste $18.75..
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PAG, 24 Aug 2009 @ 9:33pm

let the accucations fly
I see the frustrations of many people who believe they are being cheated by penny auction sites. However, you can't call a company a cheater just because you think they might be. That's called libel and if these sites were larger they would probably consider taking legal action against you. There are several sites listed here I know to be legitimate and others that seem to be fraudulent. Also, there is a difference between "scam" and "fraud". If you think penny auctions are scams, ie they are unfair games that people shouldn't play, that's fine, but fraud is stealing from people. A site like Swoopo is not stealing from people, so be careful what you call fraud and what you call a scam. I blog about the penny auction and entertainment shopping universe over at penny auction insider
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robert, 1 Sep 2009 @ 10:03pm

penny auction site
A up and coming site .. New sites are always the best.. Nice
site...good design and simple to use...
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Tony, 9 Sep 2009 @ 7:12pm

They are all scams
This proves it..... http://www.pennyauctionwatch.com/2009/09/penny-auction-owner-asks-for-fake-members/
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- Wayne, 7 Sep 2011 @ 2:46pm
  
  Re: They are all scams
  Because one is a scam you assume all are a scam? That does not make much sense. If all were scams, then all would be shut down eventually. Quibids has been around for a long time. My new site which is a penny auction allows end users to sell their own items. So scamming is not even viable. For an end user to place fake bids on their items they would have to pay for the bids, and for me to place fake bids I would have to pay my end users for the fake bidding!
  
  I still have a lot of work to do, the site is just now started... http://ePBids.com
  
  I look forward to working with a lot of you!
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Tony, 9 Sep 2009 @ 7:12pm

They are all scams
This proves it..... http://www.pennyauctionwatch.com/2009/09/penny-auction-owner-asks-for-fake-members/
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Dave, 16 Sep 2009 @ 7:04pm

Check this page
http://www.ipennybid.com/page/transparency-policy
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Tim, 15 Oct 2009 @ 1:46pm

big list of sites
I have found many more websites that do the same thing: ex http://www.prestigebids.com Competitive Bidding http://www.bidntime.com Here is a big list of them http://www.pennyauctiontraffic.com/
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Mike, 16 Oct 2009 @ 10:47am

Most penny auctions are scam
Check out the website and see how people are ripped off.
www.iwatchpa.blogspot.com
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Adam, 3 Dec 2009 @ 8:07am

Penny Auction Info
Hi to all! Check this website which provides useful information about the Penny Auction websites running and also reveals their bugs. www.pennyauctioninfo.com
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Adam, 3 Dec 2009 @ 8:33am

Penny Auction Info
Hi to all! Check this website http://www.pennyauctioninfo.com which provides useful infos about the Penny Auction sites like swoopo, bidray, etc Also, providing various bidding strategies that are needed once you buy bids to bid on Penny Auctions. Got useful information from there. :)
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Cathy Saar, 13 Dec 2009 @ 1:01pm

Penny Auction
Many Penny Auctions sites out there are failing. Whether it's poor planning, lack of tech skills to run an efficient site, or all the above, the rate in which old ones die and new ones start is staggering. It is a good idea to research these sites and see which ones have been up the longest. A good way to find out if the penny auctions are good are to contact the customer service and see how fast you get a reply. If it's within a few hours you're probably on your way to finding a great penny auction site! Regards, Cathy Saar Penny Auction
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Penny Auction, 13 Dec 2009 @ 1:34pm

Penny Auction
Many Penny Auctions sites out there are failing. Whether it's poor planning, lack of tech skills to run an efficient site, or all the above, the rate in which old ones die and new ones start is staggering. It is a good idea to research these sites and see which ones have been up the longest. A good way to find out if the penny auctions are good are to contact the customer service and see how fast you get a reply. If it's within a few hours you're probably on your way to finding a great penny auction site!
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Pognu, 9 Jan 2010 @ 8:55am

Your feedback is appreciated...
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Pognu, 9 Jan 2010 @ 9:04am

Your feedback is appreciated...
Hello everyone. I didn't come on here to get grilled or bombarded with negative feedback, but I do have a question for you. I have been working on creating a penny auction website for a few months here. I do not want to be part of anything illegal, immoral or unethical so I did much research regarding the penny style format.

After looking at the different sites, reading complaints and putting some thought into it, I added the following ideas to my site that I believe make make my site different than the others involve, but your input is greatly appreciated.

First, I have created a site in which members of the site will sell their items, as opposed to the site selling the item. I will add products from time to time if the numbers get low, but primarily this site is made for users to sell their items. Members receive $0.25 for each bid received on their items plus the price that their auction sells for.

Second, I was not happy with the concept of only having one winning bidder and everyone else loses their money. To try to counteract this problem, I have implemented a system where members receive a shopping credit to spend in our shop with each bid they place. Therefor, even if they do not win the auction, they can redeem their credits for items they want.

Third, I am giving 25% of the final penny auction cost the site lists to charity.

This site is in its beta stages but is live at this point. I would really appreciate any feedback, comments or tips from users here because I respect what you have to say. I made this site to allow everyone to have an opportunity to earn money in what I hope can be an honest, legitimate system of auction that we can be proud of being part of.

Thanks for your time, I look forward to hearing from you pognu@yahoo.com
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noshi, 16 Jan 2010 @ 6:08pm

Penny auctions are thinly veiled gambling sites. You will agree with me once I use the correct wording.

Players ante money to place a "bid" which is actually an ante. People continually ante their money and the top bidder wins the "pot" of the bids minus "house advantage" i.e. the top player wins the goods while the site keeps all lost antes as profit.

IT IS GAMBLING. A lot pitch in money while only one wins. It's a lot similar to lotteries. Don't waste your time.

I personally recommend using sniping software on eBay.com. Much easier and free to use if you don't mind being a pirate. Arrr...
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Josh, 3 Feb 2010 @ 9:32am

Penny Auction Directory
Penny auctions are a safer "gamble" than stocks, but users have to do their HW first. There are some auctions that utilize shill bidders and bots to drive up prices.

I have created a carefully-filtered directory of penny auction sites that may be helpful as you research which sites are worth bidding on.

http://pennyauctionlist.com
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Nick, 14 Feb 2010 @ 3:02pm

Penny Auction Scam
What people have to realize is that penny auctions are nothing more than gambling sites, the only problem is that most of them use shill bidders or bots. These are ghost users who make the site look busier than it really is and create an illusion for people to buy bid packs. This prompted us to protect the average consumer and launch http://www.pennyauctionscam.com
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Nevin S, 23 Mar 2010 @ 5:51am

Amazing Post
I agree with josh that Online Penny auctions are a safer "gamble" than stocks, but users have to do workhard first. There are some auctions that utilize shill bidders and bots to drive up prices.
well nice post here
thanks!
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Anonymous Coward, 8 Apr 2010 @ 9:51am

Every penny auction site is full of shill bidders and autobidding and they are all scam sites.Before you ever wast your money on these sites take a few days to observe the auctions.You will find the same core group of people win every auction and will spend thousands of dollars every day while winning only a few hundred dollars worth of items.YOU HAVE BEEN WARNED!
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Jerry Lee, 22 Jun 2010 @ 2:00am

I didn't win...but I still got what I wanted
I tried one of these sites on a whim and while I didn't win I still got a product. The site let me use my bids toward buying the product at retail price. It was a decent price too, not as good as 80% off but still okay. I bid on a laptop that I was prepared to buy at a store, but then I saw it online and thought it was a decent risk/reward if I could get the same laptop for a fraction of the price at the store. Unfortunately I didn't win, but I put that money towards buying it from the online auction site. I was happy with that, no wasted money. I'll probably try them again in the future, don't know if I'll win, but I know I won't get screwed.
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Anthony Defusto, 1 Jul 2010 @ 8:11am

Nice blog!! i also know a very good site for penny auction Bidzillion.com !!!! Save up to 99% off retail at BidZillion.com online auctions
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Anthony Defusto, 1 Jul 2010 @ 8:12am

Nice blog!! i also know a very good site for penny auction Bidzillion.com !!!! Save up to 99% off retail at BidZillion.com online auctions
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Nick, 3 Jul 2010 @ 1:46pm

Yes and No
Penny Auctions are a bit like gambling however it's not the same. Sure your bids cost money but the one thing to remember is that you have to participate in legitimate auctions, don't fall prey to overnight penny auction sites. This is the down side to the industry, however we keep a watchful eye so you don't fall for fake sites.
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CHECK IT OUT, 13 Jul 2010 @ 9:40pm

NEW PENNY AUCTION
Want to win a product cheap? You will at a new site offering a variety of stuff. Check out koopypennyauction.com
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mybidshack (profile), 25 Jul 2010 @ 7:57pm

MyBidShack, Zeekler Penny Auctions Compensate Users
MyBidShack (and its "sister site" Zeekler) makes bidding at a penny auction totally affordable... and actually quite profitable. This company has a 10-year track record and is listed with the BBB with a great rating. (listed under LightHouse America) The Bidders of these 2 sites actually earn paychecks at the end of each month... while getting sweet deals at the auctions!!!
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Penny Auction Online, 13 Aug 2010 @ 4:04am

Re: penny auctions
Well I am not completely agree with your topic. In the penny auction, bids are in the hands of user so where he wishes he may get into it as much it use its wit than certainly get the benefit of it. While in the gambling, everything depends upon the luck. So both can not be compared.
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Penny Auctions Talk, 29 Sep 2010 @ 3:21pm

Penny Auctions
I agree with you. We have been bidding on penny auctions for a long time. What people needs to know is they need to understand what they're doing. The uneducated just make guesses and accusations. As always the winners will tell everyone how good a thing this is but the losers will whine about how unfair the game is played.
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Penny Auction Master, 25 Oct 2010 @ 9:55pm

You gotta be carefull which ones you sign up to
Personally i've had success with bidcactus and bidrival. You can check out a lot of resources online to see which ones are good. My personal favorite is Penny Auction Reviews
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cheappennyauctions (profile), 4 Nov 2010 @ 11:42am

They can be considered gambling if you want it to be
I have seen people who will cash in multiple times a day just to bid on bids. You can definitely become addicted to them and use it to calm your gambling urges. But in reality if you use it correctly and really do your research you can win.
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penny auction site review, 10 Nov 2010 @ 9:26pm

sure it is
First off, the math by omar above is right. However, you cannot complain how much profit they make. The math just proves that those penny auction sites do not have to be scam. I personally think the idea is both brilliant and evil.

Speaking of gambling, if this is not gambling what is? I have watched people play no-limit poker with 10's of thousand of dollars in the pot, an "all-in" looks just like a robbery under the sun! I can imagine people bidding with red ears!

Then again, only dummies do that (bidding and betting with red ears). there are suckers in a poker game, and there are suckers in penny auctions. You can bid carefully just like you can play poker carefully. Have the concept right and keep yourself under control, and you are going to win.
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Louis, 24 Nov 2010 @ 11:21am

Stats and data on penny auctions
You can find many stat on penny auctions at http://www.pennyauctionintelligence.com
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dontknow, 7 Dec 2010 @ 8:41am

yes it is gambling
I believe it is, because if you don't win you will lose something. However, the types of penny auctions are becoming better Like: pay to play bidding, were you know you are only bidding against 3 to 25 people like at bidwarfare.com. They can actually bid as a group/family and get what they want for a few cents. You should also be able to get a right off from your taxes for loosing (which would be cool)
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Foopile Penny Auctions, 28 Dec 2010 @ 11:42am

PA
Penny auction can be addictive so it is important to know when to bid (and when to stop bidding). Do a lot of research about the PA ste and know study your opponents. Most PAs have the Buy it now feature. So even if you don't win the auction, you can still buy the item using the cost of bids already placed on that item.
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dennis, 2 Jan 2011 @ 1:58pm

I Agree
I agree these penny auctions are not gambling. They are auctions sites that make it possible to get a great deal on products if you know how to bid. My best one has been a Ipad for $14.36. Just like on Ebay you have to know how many times you want to bid and of course snipe it at the end.
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James, 4 Jan 2011 @ 11:07am

Penny Auction
I do however completely 100% agree with John A´s comment about it not being similar to gambling, it´s simply a paid auction service. Fore new comer for penny i recommend you :
http://www.articlesmoz.com/get-a-great-deal-with-penny-auctions
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Raging Bid (profile), 26 Feb 2011 @ 8:00am

Not so fast
Not all penny auction sites are the same. We offer a ton of promotional bids, more so than any other site and we believe strongly in the no purchase necessary to win. We look at everything from the eyes of the auctionees and do everything possible to create a friendly user experience. We often reach out to the community for suggestions, generate charity auctions and events, and focus on experience making it as fun as possible.

Are all penny auction sites the same? No, but we would like everyone to base an opinion off of their own user experience.
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Jonny, 10 Mar 2011 @ 7:43pm

Definitely is Gambling
Yes it isn't complete luck, but neither is poker. It still is gambling. It is a scam. A Big one! Why? because most people don't realize it is a scam, so they keep throwing your money away.

When you bid on a product and win, yes you only got a big screen TV for 20$, but 100 other people also spent about 20 $ and got nothing. Congratulation you just used 100 people to buy a TV for you. They got nothing, maybe because they weren't lucky enough to be the last bidder, or they ran out of bids. 100 people just spent 20$ so you can have your TV

I have a questions to the people who won items, how many auctions did you lose, on average, unless you are really good, you probably lose a lot more than you win.

If you win more than you lose, then you are just good enough to use other peoples money, while they get nothing.
Congratulations

It is not a paid auction service because you pay to bid. The amount you pay directly correlates to the number of times you bid.

Also many of this sites don't calculate the bid price in the price of the item. remember for each penny the item price is someone is paying 0.25 to 1$ or more
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Bidrack auctions, 28 Jun 2011 @ 9:06am

Bidrack Penny Auctions
Thanks for creating a sweet able & popular blog.
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Penny Bids, 20 Jul 2011 @ 4:58am

penny bids
Penny auction sites are indeed a great way to get great items at affordable price. I just got an Ipad 4. I feel so lucky!

Thanks for sharing.
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Penny Bids, 7 Oct 2011 @ 12:25pm

Penny Bids
I am a fan of penny bids because I have won an iphone for super low low price. Thanks for sharing an informative post. Keep posting! Staying tuned for more.
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info1776 (profile), 2 Mar 2012 @ 9:15am

penny auction is not gambling
I was told penny auction sites were like gambling because if you don't win you bids are "lost", at first i agreed then after a thought, they are only lost if you never bid again.
However you bid again and win no they are not lost because you won on your next item and your still not paying full retail price.
let me explain:
Think of it this way,
you have ten people, each put in $1 for an item worth $10
person 1 gets the item pays 1 dollar, persons 2-10 are out $1 (but are they)

All ten bid again but person 2 gets the item for $1, person 1 and 3-10 are out $1

again all ten bid again person 3 wins person 1,2 and 4-10 are out.

again all 10 bid again person 4 wins......

all 10 bid again person 10 wins and pays $1 dollar persons 1-9 are out $1

but wait look at the whole picture everyone paid $10 for a $10 item

NOW GAMBLING
Same 10 people put in $1 each into a "pot" but a random chance someone will "win" an amount not equal to the total "value of the pot" now matter how many times the games is played

to sum it up
-gambling people loose more then they get,
-penny auctions you get a good deal, but its more "everyone helps pay, they help you buy when you win and when you loose you help them buy, its a win win for everyone.

The good. you can really save money if you watch your bids and bid only on things you want.

The bad if your not careful with bidding you could end up paying by per bid cost more the what the item is worth.

o and the timer, counting down or adding time to the end of the bid that's the DIGITAL auctioneer saying going once going twice......
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Penny, 28 Apr 2012 @ 9:05am

May the Law Decide
Yes, they are not gambling, and so says the law of the US. Penny auctions are not governed as gambling casinos are. Of course that should answer only part of the question

Penny auctions do have an element of chance but so does starting a business in any other area. The main thing which distinguishes penny auctions from gambling is that chance isn't the only factor. And this is a crucial distinction. When I wrote my series on Quibids strategy guide (http://quibidsblog.blogspot.com/p/complete-penny-auction-strategy-guide.html) I didn't know it would help so many people beat penny auctions. I guess it does now. Yes, you can maximize your chances of winning
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thinkorsink (profile), 21 Oct 2012 @ 10:35pm

HQ auctions WEBSITE
Signed up bought "bids" what a total disaster. Someone else won the bid for less than I was bidding. How? Not enough "bids" in my account! Why did they actually sell the item to someone other than me for less? Because they make more money selling you bids that get you nowhere...if you don't have enough you cannot win and they cost money. In addition you cannot control how much you are actually paying for any item you are supposedly bidding on with this system. IT IS A TOTAL SCAM AND JUST A MATTER OF TIME BEFORE THE FAIR TRADE COMMISSION SHUTS THEM ALL DOWN. THERE ARE PLENTY OF REAL BID STYLE SITES THAT WILL NOT CHARGE YOU TO EXIST AS ONE OF THEIR CUSTOMERS! TO TELL YOU THE TRUTH I ACTUALLY FEAR THEY WILL EMPTY MY BANK ACCOUNT TOMORROW BASED ON THE WAY IT WAS WORKING...THEY MEMORIZED MY PAYPAL INFO AND WHEN i PURCHASED "BIDS" THE SECOND TIME I WAS NOT ASKED FOR MY PASSWORD SO OH WELL DON'T GET BURNED KIDDIES...
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thinkorsink (profile), 21 Oct 2012 @ 10:36pm

WARNING
BEING THE HIGHEST BIDDER DOES NOT MEAN YOU WIN ON THESE SITES BECAUSE IF YOU RUN OUT OF PAID "BIDS" YOU CAN STILL LOSE EVEN IF YOUR BID IS THE HIGHEST. GO FIGURE?
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Steve, 28 Jan 2013 @ 8:36am

Investment?
Could online penny suctions be even remotely viewed as short term investments? You put in your money with the hopes of getting a return? There are so many variables to consider, but it might make sense. I don't think online penny auctions are so bad if you view it that way.
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FallingPenny, 27 Aug 2013 @ 12:24am

Falling Penny
Falling Penny, a great new way to bid, shop, save and have fun
All from the comfort of your home.

The most innovative and exciting bidding site EVER is now at your fingertips. Avoid the annoying crushes at the stores. Now you have the chance to get what you want at the price that you want.

What�s on your Dream List? Flat screen TV, Digital Camera, I-Pad . . . for under $20.00!!
How about Jewelry, Designer Watches, Household Items, Sporting Items, Tools . . . for under $10.00.
Ever dreamt of a free shopping spree? Having your mortgage paid off?

Well with Falling Penny whatever is on your Dream List really can become a reality.

https://fallingpenny.com/registration.php?ref=mgrabit is the world�s first real international website to combine the fun and excitement of the penny auction phenomenon with the saving benefits of deals shopping sites and the loyalty programs of customer rebate sites.

Finally a website that gives you unbelievable deals on every type of product and service that you can possibly think of, that also provides incentive commission rebates based off total purchases by customers and not just your own purchases and also gives you the chance to win incredibly packaged trips, exclusive jewelry, cars of all makes and sizes, in home Theatre Systems and everything in between; ALL IN ONE PLACE! How simple is that.

Register today for Free at https://fallingpenny.com/registration.php?ref=mgrabit and be part of:

� The first and only reserve auction site in the world
� An auction site that has a 5% of total monthly sales customer loyalty rebate program
� Free auctions with real items for you to win every day
� No New bidder auctions - fair chance to win every time
� A �buy now� automatic 20% discount feature
� A 75% retail buyback program, where the company will buy your item back for 75% of the retail value
� Fantasy auctions, crazy auctions, specialty auctions and downright outrageous auctions
� And MORE!
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