It’s a snowy Saturday here in Minneapolis, 34° (can’t wait until it’s -20° windchill, eek!) and I’m blogging from WordPress’ WordCamp at Best Buy Headquarters, and no, penny auction sites are not blocked, but I did see that an article on Black Friday 2010 Bringing Illegal Online Gambling To Penny Auction Sites, has been.
A bit controversial, but would you say that penny auctions are gambling? What about penny auction sites that award cash prizes?
What’s the weather like where you’re at?
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Mr D November 13, 2010, 6:15 pm
ah! Florida, great weather today, 73 degrees in mid november. 🙂
I think penny auctions are a great business model, rather revolutionary.
I see nothing illegal about charging for bidding. Many face-to-face auctions charge some sort of entry fee or registration fee to bid.
However, when it comes to bidding for cash, I won’t gamble my luck there with the FTC. The problem with cash is that it comes really close to a lottery which we all know are illegal. You pay for a chance to win the grand cash prize.
Amanda November 14, 2010, 10:40 am
Hey Mr D. thanks for stopping by! Yeah, FL sounds nice! I get to shovel snow today :). I do agree, I think bidding for cash does make them a lot more like a lottery.
Mr D November 15, 2010, 7:37 pm
Hi Amanda, I shoveled snow for 12 years in Rhode Island! No more snow for me in my near future! 🙂
The penny auction for cash business is really tempting but it’s definitely too risky.
Amanda November 15, 2010, 8:42 pm
Yes, it’s always fun :-D! I just don’t like how cold it gets! Definitely the modern day “dollar auction” 🙂 May not even be legal since they’re akin to lotteries/raffles.