The following article is a guest contribution submitted to us by a reader.
The Penny Auction Industry will always be suspected of shady dealings. In the history of penny auctions never once has any site owner said, “My site runs shills and bots.” (Editor’s note, except for our “Shillo site” and the few penny auction owners who admitted it behind the scenes), yet in the past 10 years hundreds of sites have been found guilty of exactly that.
It has gotten to the point that no matter what the site whenever you get run-up on an auction you have to wonder if you were actually bested by another bidder or a bot. How do we know if a “Timer” site is not shilling or running bots. We don’t. We just have to trust the site owner. How do we know if a “Random Reserve Auction” site isn’t really just setting the price in the backend and just claiming to be “Random”. You don’t. We just have to trust the site owner. I am not saying “trust” is a bad thing. Everyday consumers make choices based on “trust.”
However, Ronald Reagan once said, “Trust, but verify.” Never have truer words been said in regards to the penny auction industry. The question is, who should be the gatekeeper? Obviously, it can’t be anyone who is bidder. In almost all cases I believe the best type of government is the government that governs lease. In this case, I believe it makes sense for the Department of Commerce and Consumer Affairs to set up a gatekeeper where all penny auctions would legally be required to grant the DCCA access to the sites data where they can personally check all transactions and information on bidders.
How likely is it that the DCCA will ever set up such a gatekeeper? Better odds of winning the lottery. In Brooklyn the saying goes, “How do you know you are going to get screwed over by someone in business? They say ‘Trust me.”
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