Is SkoreIt a Scam? No, says Company CEO

Recently, published a series of consumer news features that put penny auction websites under the microscope. In response to one particular article, we were contacted by Chief Operating Officer Joe Crivello. Despite numerous online reviews complaining about a supposed SkoreIt scam, Crivello insists his company is honest with its customers. Before you spend a single cent at any bidding fee auction, you should know all sides of the story.

Penny Auctions Under Fire

Recently, some powerful organizations decided to speak out about the potential pitfalls associated with bidding fee auction websites. The Federal Trade Commission, Better Business Bureau and AARP have all issued reports warning consumers about these so-called bargain websites. According to each organization, many of these companies use shady tricks to scam users; however, Crivello says these warnings do not apply to

“It is important to note that the FTC, BBB and AARP have not indiscriminately warned consumers against penny auctions,” Crivello said. “Instead, they have warned consumers about the unscrupulous practices of some of our competitors: warnings which are simply not applicable to SkoreIt. Specifically, their concerns tend to focus on shipping delays, hidden costs, misleading terms and poor customer service.”

Despite Crivello’s statement, the fact is that the FTC, BBB and AARP have warned that most consumers tend to lose money when they participate at penny auctions. According to the FTC, because bidders are forced to pay for the right to bid, they lose money even if they don’t win the auction. Additionally, the FTC states that even winning bidders often end up paying more for an item than they expected.

Is SkoreIt All that Different?

The FTC has warned consumers that many penny auction websites use automated software known as “bots” or “shills” which make bids on behalf of the company. According to Crivello, his company does not employ this type of strategy, and he says all employees are contractually bound to never place bids on any company auction.

Recently, QuiBids underwent a third-party audit performed by Grant Thornton, which determined the company did not use shills; however, according to Crivello, his company has not taken similar measures to prove that every auction is fair.

“SkoreIt has not conducted an audit with Grant Thornton, although we are evaluating that and similar options for continuing to demonstrate our commitment to the fairness of our auctions,” he said.

What Consumers Should Know

Many consumers are attracted to penny auctions, because they represent a form of high-risk, high-reward entertainment. That said, consumers should be wary of companies that might use unscrupulous strategies to encourage bidder failure. According to Crivello, consumers shouldn’t be worried about a SkoreIt scam, because it’s in his company’s best interest to provide a positive experience to its users.

“We believe that customer education is one of the most important things that we can dedicate our time to,” he said. “Accordingly we have built a detailed help section on our website. We also send our new customers helpful pointers via email, if they choose to opt in for them.”

Ultimately, without third-party audits, consumers have no way of knowing which penny auction is truly on the up-and-up. Until Crivello’s company invests in this sort of in-house investigation, users will either have to take the CEO’s word or choose to spend their money elsewhere.

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