Penny auctions are gaining a bad reputation for taking advantage of consumers who are unfamiliar with how the bargain websites work. Recently, QuiBids.com faced more than a few accusations that it used shady tactics to promote bidder failure. Recently, the company responded to the prevalence of QuiBids scam accusations by doing an internal review aimed at proving its practices are on the up-and-up.
How These Scams Work
According to the federal government, many penny auctions employ automated bot software to make fake bids. This aids the companies in two ways. First, it encourages more bidders to get involved in any one auction by extended the time limit. Second, because automated bots sometimes end up winning auctions, the companies are able to maintain merchandise and sell it again in another auction.
QuiBids Scam Report Improves BBB Rating
Recently, QuiBids.com hired a reputable third-party auditing firm to take a long look at the way it did business. Ultimately, the auditors found that the company did not utilize automated software in its auctions, and the Better Business Bureau has since raised the company's overall rating for performing this voluntary audit.
What Consumers Should Know
Even though QuiBids has successfully demonstrated that it doesn't overtly attempt to cheat users, it may still face problems. Many have accused the Oklahoma-based company of being little more than an online gaming platform. Additionally, a host of reputable organizations have spoken out against all penny auctions, because they force customers to risk money every single time they place a bid.
Ultimately, because these sites prosper every time a bidder loses, they tend to prove costly to inexperienced consumers who don't understand how they work. The federal government encourages bargain hunters to avoid these websites; however, they are still legal, and many people claim to enjoy them as a source of risky, thrilling entertainment.
If you decide to give Qui Bids or any other penny auction a try, you should slow down and read over each company's user manual and terms of service. You'd also be well-served to do an Internet search to see if there are any online reviews complaining about the use of automated bidding bots. That said, like most things in life, when it comes to discount auction sites; it's buyer beware, regardless of the company's reputation.
Related KingofHowto.com Stories