Many penny auction sites have been not only been using Swoopo clone software they also copy Swoopo’s terms & conditions and link to Swoopo’s acceptable use policy. Others even go as far as to copy Swoopo’s About Us page verbatim and change Swoopo to their company name. Some even call their company a corporation when there is no corporation registered in their said state to their “incorporated” name.
Also, something needs to be done about the $/hour fines if a customer complains to PayPal, will this really stand in court? And is there a valid reason that a user has made complaints?
Here’s from a new penny auction’s actual terms and conditions, this has been replicated by many sites:
“If a Member for any reason disputes any charge from PayPal or PennyAuctionSiteNameHere.com the Member will be deemed in breach of this contract and will be subject to fines of $500 per hour that the amount is disputed with PayPal and the complaint is live up to a maximum of $5000.00. The $500 per hour starts the minute the dispute is filed and continues until the breach is fixed. The amount of the fine becomes due immediately and will be turned over to a collection agency if not paid within 10 day.”
We receive many E-mails from penny auction start-ups requesting our advice. We thought we should tell you that if you are starting a penny auction to please first consult a lawyer and draft up your own terms & conditions.
Also, please if you say you are a LLC or a corporation make sure you are one, sure the words Penny Auction Site Name Here, Inc. sound good on paper but it’s not legal and binding if you have not taken the necessary legal steps to become one.
With that said, if you would like to know what penny auction users want check out our forum, you will find that penny auction watch members, and all penny auction watch users for that matter, have a zero bot tolerance. Do your homework, plan your new entertainment shopping business out like you would any other business and most of all be honest!
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mywork September 22, 2009, 1:43 pm
Yes, Infact I have seen that in many new penny auction websites.Thanks for your good work.I guess many have started this as work from home business and every other day one penny auction website is popping up.I am analyzing much more auctions websites, will let you know once I have confirmed reports on them. Thanks !
MR Rick April 1, 2010, 9:44 am
Good advice, but it doesn't really matter because the swoopo/telebid clones are purposly flawed. they are designed to fail when you imput a certain load, over 50 to 75 items or auctions at one time causes the crons to fail to act properly. timers slow down, site freezes ect. see swoopo clone complaintes ect. ( swoopo/telebid same company has allowed these clones to be sold ??? why do you think they have allowed these clones to be sold in violation of copyright and trademark laws??? maybe they are behind the flawed sites and this is their way of driving new cutomers to their sites. Just a though but an intersting one. because if I had a popular site and someone was cloning it I would be up in arms unless I knew that there was something wrong with those clones firsthand
But you advice is well taken for those who chose to develope their own cutome site. why cut corners after going thru the expense. the PHP scripts are just as buggy
Joe February 4, 2011, 6:02 pm
I would love to see beezid or any other penny auction site try to get $500.00 an hour from me!
They are all hidden online gambling sites and it won’t be long till they’re shut down for good. Of course by then the owners will probably be millionaires.Quibid already has a class action suit against them.