HappyBidDay Scam? Penny Auctions a Bad Deal: FTCBy Sarah McDaniels on April 13, 2012 with 0 Comments
Allowed to operate for years without much scrutiny, penny auctions have fallen under a microscope of late, thanks to some powerful organizations that have begun warning consumers about potential rip-offs. One site, called Happy Bid Day calls itself the #1 discount auction site on the web; however, there’s plenty of Internet chatter regarding a supposed HappyBidDay scam. Before you play, learn what some consumer advocates are saying.
The Low-down on Penny Auctions
Just a few months ago, the Federal Trade Commission issued a report warning consumers about bidding fee auction sites similar to Happy Bid Day. According to the federal agency, since users must risk money to place every bid, they tend to come out on the losing end more often than not. Recently, both the Better Business Bureau and AARP joined the fight to educate consumers by issuing their own reports warning about the use of automated software to cheat unwitting users.
Is HappyBidDay a Scam?
According to the BBB, many penny auctions use automated bots to place bids on behalf of the websites themselves. This drives up prices, prolongs auctions and encourages bidder failure; all of which help the companies earn greater profits than they normally would. While there’s no way to know if HappyBidDay.com uses similar strategies; the company is not accredited by the BBB, and the organization has currently placed a consumer alert on Happy Bid Day, because “mail sent to the business was returned by the U.S. Postal Service.”
Are there Any Reputable Penny Auctions?
The FTC and ARRP warn bargain-hunters to stay away from bidding fee auction sites; however, many consumers who view the websites as contests may enjoy participating in what they see as a form of high-risk entertainment. The BBB has awarded some auction websites with an A rating, including QuiBids, which recently underwent testing by a third-party auditing company that determined the website did not use automated bots to cheat its users.
If you want to risk your money at one of these sites, but are worried about a potential HappyBidDay scam, you’d be well-advised to look for an auction site that has earned a high rating from the BBB. That said, don’t expect to have a high success rate; as most participants end up losing money in the long run.