Penny Auction Watch has been concerned about penny auction bidding sites who scam penny auction bidders with unethical, fraudulent practices such as shill bidding and shill bot bidding. Bidding sites that steal from consumers have come and gone over the years and it’s not ok.
Another concern we’ve had for quite some time has been the bidders who defraud penny auction sites by colluding with friends and other bidders to “tag team” and take turns bidding to win items cheaply, this is unfair competition and should not be done by any bidders as it’s extremely unethical.
The following is a guest article sent into us by a penny auction enthusiast turned site owner:
Penny Auction Pimps
The literal definition of a pimp is, “A man who controls prostitutes and arranges clients for them; taking part in their return payment.” The word pimps can’t be applied literally to some bidders, but in a figurative sense there are a number of bidders in the penny auction community that can be called pimps.
Most discussion about corruption in the penny auction community revolves around corrupt site owners who don’t ship wins or run shills and bots on their site. These site owners have hurt the industry to almost a point of beyond repair, but they are only 85% of the reason that distrust runs rampant in the penny auction industry. The other 15% can be laid on the corrupt bidders who collude, team bid, and hold the strategy of Tag and Defend as sacred. One of the reasons Quibids and DealDash monopolize most of the industry is because these penny auction pimps tend to prey on start-up sites where they can much more easily get away with their tactics. These corrupt bidders don’t effect dishonest start-ups because these strategies don’t work on a site that shills and runs bots. However, they milk an honest start-up site dry until that site shuts down. As for these penny auction pimps, they take their winnings with their friends and move onto the next site.
Thankfully, the majority of bidders in the penny auction community are honest and descent people who enjoy the thrill of a penny auction. Nevertheless, there is an expression that is very true, “A few bad apples can spoil the bunch.”
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