Consumers are always looking for big bargains, and many have turned to penny auctions for discount merchandise. One company called claims to offer hot deals on laptops and gift cards; however, there are numerous complaints regarding an Arrow Outlet scam. Before you sign up, be aware of the Federal Trade Commission's recent warning.

FTC warns consumers

Recently, the FTC issued a warning to consumers regarding penny auctions like DealDash, QuiBids and ArrowOutlet. According to the agency, these auctions usually charge big fees just to register, with consumers having to pay every single time they place a bid. The agency also warns that many consumers have complained of bait-and-switch tactics, late shipments and no shipments.

The FTC also warns that winning bidders tend to end up paying much more for items than they expected. For instance, the agency says a $50 winning bid for a camera might end up costing $250 if the member placed 200 bids to win the auction.

Is ArrowOutlet legit?

There are many online complaints regarding an Arrow Outlet scam in which some accuse the company of using automated bots to place fake bids on behalf of the auctioneer. If true, this would set bidders up for failure and ultimately help the company profit. One group claims to have demonstrated that enjoys less traffic than bidders, which may indicate that not all of the bids you see at their auctions originate from human beings.

What you should know

Although there's no way to know if the supposed ArrowOutlet scam described by some online reviewers actually exists; there can be no doubt that the FTC has clearly warned consumers to stay away from sites like Arrow Outlet. If consumers do choose to participate, the agency encourages them to learn how these auctions work and recognize the potential pitfalls before investing too much money.

In the end, although penny auctions may offer consumers a chance at high-risk, high reward excitement, they aren't suited to those looking for consistent bargains. If you're looking to get good deals on quality merchandise, you'd be better served using a site, such as LivingSocial, which offers coupons from local brick-and-mortar merchants that tend to be more trustworthy than mysterious entities on the Internet.

Other Recent Stories

Losing Belly Fat Dependent on Smell: Weight-Loss Study

Study: How to Get Rid of Bags Under the Eyes

BidsTick Scam? All Penny Auctions Risky, says FTC

Real Estate: Mortgage Refinance Still Affordable

EAS Myoplex Review: Arsenic in Bodybuilding Shake

Lipozene Reviews Scam Unwitting Consumers

KuduBids Scam? BBB's Guide to Penny Auctions

Muscle Milk Side Effects: Product Contains Lead

Kim Kardashian Diet Drug QuickTrim under Fire

Zeekler Scam? FTC says All Penny Auctions Spell Trouble

Dallas Cowboys Fans want Jerry Jones Fired, and rightly so

Low Interest Rate Credit Cards Easier to Find

Diet Doc Scam Pushing HCG Diet on Consumers

New Breast Implants Coming; but is Plastic Surgery a Wise Choice?

BidHere Scam? Beware of Penny Auctions, says FTC

APMEX Reviews Prompt Response from Company's CEO

Phen375 Reviews Scam Unwitting Consumers

Investing in Gold Not How to Make Money: Buffett