The BBB Now Warning About Penny Auctions

Well, it’s been awhile now since I started Penny Auction Watch℠ to warn consumers about online penny auction sites that are ripping us off, now the Better Business Bureau is telling consumers to take caution.

From the BBB article:

“Online ads, often designed to look like news reports [we told you about this the other day], are cropping up on popular websites claiming that you can get great deals on iPads and other electronics with online penny auctions.”

“BBB has received hundreds of complaints from consumers about penny auctions so far this year and we’re encouraging online bargain hunters to do their research,” said Alison Southwick, BBB spokesperson. “Unlike typical auctions, unsuccessfully bidding on an item through a penny auction will still cost you and BBB has heard from people who lost thousands of dollars bidding on items and have nothing to show for it.”

“Many people have complained to BBB about being automatically charged $150 just for signing up for what was supposed to be a free trial. Others complainants have voiced their concerns that some sites use phony bidders and “bots” to drive up the prices on items. Customer support is also a major concern as many complainants explain they had a very difficult time receiving refunds or resolving other issues with the company.”

The BBB is advising users to research with the BBB first, read the fine print, know what you’re buying, watch your credit card statement and mentions the unexpected $150 charge that many, many consumers are getting from a few particular sites. They also tell consumers to file a report with the BBB, they may be able to assist in obtaining  refunds.

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9 comments… add one
  • EIS October 3, 2010, 6:14 am

    Perhaps the BBB should consider not accepting Penny Auction sites as certified members of the BBB …

    Reply
  • Chris October 5, 2010, 5:22 am

    I agree.

    Reply
  • Metallidog October 10, 2010, 2:20 pm

    The BBB is stating the obvious here. When it comes to doing anything online, ALWAYS understand what you're getting into before you jump in. It drives me crazy how people complain about the Penny Auction sites taking their money. I have been looking at many of the sites and have found none that don't disclose how the process works. If you lose a ton of money gambling in the casino you don't call the BBB, you call the gambler's hotline. Penny Auction Student

    Reply
  • Abi Lynch October 20, 2010, 4:14 am

    DO NOT USE! SCAM SCAM SCAM! They charge you $149 and there is NOTHING on the website that says they charge you that! NOTHING! DONT BE FOOLED! SPAM SITE!

    Reply
  • Suzumebachi October 20, 2010, 9:51 am

    I agree with Metallidog has it right, "If you lose a ton of money gambling in the casino you don’t call the BBB, you call the gambler’s hotline". People know what they are forfeiting and they are aware of the risk. Boohoo that they lost money. You should do your research and make an educated decision before puttin yourself at risk. Maybe this is the difference between the wise men and the fools.

    Reply
  • Cindy November 24, 2010, 4:07 am

    I agree with Abi Lynch- DO NOT USE! SCAM! SCAM! SCAM! I was charged $149.99 and there was nothing on the web site that said that was going to happen. I agree with the other comments about people complaining that they’ve lost money bidding on items – you know there is a chance that you are going to lose. If you’ve lost tons of money, go to a gambler’s anonymous meeting. But this is different – I hadn’t even started bidding on anything and was out $149.99! SCAM!

    Reply
  • jim December 20, 2010, 3:52 am

    Dated December 20, 2010
    1:51 am California Time
    Bidmacs.com show no auctions on almost every category, yet the have a lot of bidmac bidpacks you can buy, only 2 other auctions for 2 gift cards that don’t start for over 5 hours.

    Site is a total ripoff, I joined last month from what I thought was the news doing a story on them, I paid the $149.00 won 6 auctions, 4 items arrived, 2 have not, they promise to look into it, but they dont, I have spent hours on hold with them, they do not respond to their contact us page. One month ago they had lots to bid on now they have only 2 gift cards and the rest are bidpacks. Buyer beware.

    Reply
  • jim December 20, 2010, 10:42 pm

    Update on bidmacs.com

    After being on hold today for over 2 hours I finally reach a live person, I told them my issues and guess what they closed my account.

    Today I filled in small claims court.

    Reply
  • rdgpeach March 5, 2011, 11:00 pm

    I have had both good and bad experiences with Bidmacs.com
    The latest being bad. I would appreciate any information anyone can give me regarding how to reach them, and then how to reach BBB.

    Appreciate your time.

    Reply

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