I am SO thankful for the Florida State Attorney General’s Office, as well as the Washington State Attorney General for all of their interest and work they have done to bring justice to penny auction scammers and provide restitution to bidders who were shamelessly robbed. This is actually the BEST penny auction news I have to report in a very long time.
Were you ripped off by penny auction site ArrowOutlet.com?
Back in early 2012 PHD students from UCSD confirmed what I had already suspected to be true… bots on the penny auction site ArrowOutlet.com. Penny Auction ArrowOutlet.com Robots Exposed By UCSD Mathematics PhD
“We have decided to make this data public and anyone who would like to use this information can. In November and December 2011, the majority of bids at ArrowOutlet.com were placed by robots and the majority of auctions were won by robots. As a result, 95% of all humans who participated at ArrowOutlet.com in November or December 2011 lost money overall. In these 2 months, human net loss totaled over $260,000.00.”
|November and December 2011 statistics at ArrowOutlet.com[separate months]
|Links to data
|[How we detected Robots]
|[All Bid Histograms]
|[All Completed Auctions]
|[Individual Net Earnings]
|[Who are these robots?]
Did you see that? These students allege that human net loss to the penny auction site has totaled over two hundred sixty thousand dollars!!
After two years justice was served when the Attorney General of Florida, under Pam Bondi settled with ArrowOutlet to obtain $425k in consumer restitution.
“TALLAHASSEE, Fla. – Attorney General Pam Bondi’s Office obtained $425,000 for consumer restitution through a settlement with Arrow Outlet, LLC, a penny auction website, resolving allegations that Arrow used programming code to deceive consumers throughout the country, and eligible consumers have until Aug. 16 to file a claim. ArrowOutlet.com allowed users to purchase and place bids on various consumer goods. The complaint filed in Leon County alleged that Arrow engineered an “auto-bid script” that artificially inflated the number of bids required to win a given auction. Allegedly, the auto-bid script was designed to place bids at certain intervals, thereby prolonging the auction, increasing the number of bids purchased and used, and preventing actual users from winning the items.
“I encourage all Floridians who may be eligible for restitution to submit their claims before the August 16 deadline,” said Attorney General Pam Bondi. “We will continue our efforts to protect consumers.”
The settlement agreement prohibits the defendant from, among other things, creating, administering, running, purchasing or in any way using a penny auction website to generate income. The lawsuit was dismissed upon execution of the settlement agreement.
Scammers who want to try and rip off consumers like ArrowOutlet did, don’t even think about it.
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