In an effort to curb the potential for further damage to the industry, state regulators have put a stop to unsavory acts perpetrated by individuals who run penny auction sites in an effort to defraud the public. Recently, a penny auction site operator in Washington State was brought up on charges that he used automated software to place shill bids to ensure that the company won the bids, and in the process keep the bid money spent by legitimate consumers.
Value seekers have been turning to the Internet over the years in an effort to uncover fantastic, unannounced deals on products. These consumers know what they are looking for and each approaches the task with a level of sophistication that one would not expect to see in something as mainstay as shopping. Ebay, once a favored marketplace for value seekers, no longer holds the same edge as it once did, as the discount factor is no longer significant relative to what’s available at other discount outlets. Factor in shipping costs and sometimes risky sellers, and one can begin to see that the rewards are not enticing enough for value seekers looking for the ultimate deal.
These extreme value seekers have now turned to a new crop of deal sites that promises to deliver spectacular values while providing the thrill of the bid at the same time. Because a penny auction bidder pays to bid, with each bid that is registered, participants know that their interest in the product is being undermined because these are real bidders they are going up against, and not some malicious window shopper such as those that troll auction sites such as eBay. Factor in a timer which is influenced with each bid, and you have the makings of an engaging action packed entertainment venue that promises great products at fabulous prices to the winner.
Unfortunately for the industry, a few rotten apples have decided to use the penny auction format to defraud consumers. Seeing penny auction sites in part as a form of entertainment in which consumers pay to play, these unsavory characters have decided to take advantage of consumer participation to enrich their own coffers. In essence, they rig the system so that no products are won, yet they still rake in the bid fees.
The silver lining for the industry is that state regulators are now taking a close look and prosecuting those found to have been less than honest with their client base. “With this weeding out process, the penny auction industry is being swept clean, and what this ultimately means is that consumers will maintain their confidence in the penny auction industry, secure in the knowledge that the government is watching out for them,” explains Peter Lessard, managing partner of pennyauction.com.
With the bad guys gone, what remains are the legitimate penny site operators. One such operator is pennyauction.com, which launches on November 15. Between now and then, consumers can check out what’s brewing over at pennyauctions.com, and sign up for a chance to win great products from Apple, as well as bid credits valued in the thousands.
About:
Pennyauction.com promises to be one of the largest penny auction sites in the United States. The site is poised to launch on November 15, 2010, and when it opens its doors, it will auction off loads of coveted products including, but not limited to electronic equipment, televisions, computers as well as household items and gift cards.
Contact:
Peter Lessard
PennyAuction.com Inc.
(site) http://pennyauction.com
(email) info@pennyauction.com
(voice) +1-888-223-8858