Online ads are cropping up on popular Web sites claiming you can get great deals on iPads and other electronics with online penny auctions. The deals are tempting, but the Better Business Bureau warns bargain shoppers to do their research before signing up and making a bid, as some of these sites have had issues and have been used to steal personal information.
With most of these sites, users must set up an account and purchase bids with a credit or debit card. Each individual bid may cost less than a dollar and are often sold in bundles of 100 or more. Every item has a countdown clock and as people bid, the cost of the item goes up. Even if you don’t win the item, you must pay for the bids you placed.
The BBB has received hundreds of complaints from consumers about penny auctions – people have reported losing thousands of dollars bidding on items that they never received.
Some of those complainants said they were automatically charged $150 just for signing up for what was supposed to be a free trial. Others complained the sites used phony bidders and “bots” to drive the prices up on items. Customer support has also been a concern as some consumers said they had difficultly receiving refunds or resolving other issues.
Before going online and making your first bid, be sure to research the penny auction with the BBB first, and read the fine print carefully. Before providing any personal information or signing up for a free trial, read the entire agreement. Pay close attention to details on signup and annual fees, minimum bidding requirements, maximum prize amounts and how to get a refund.
Before bidding on an item, research how much it costs elsewhere and keep track of how much you’re spending on bids overall to determine if you’re really getting a good deal.
Be sure to check your credit card statement to be sure you aren’t overcharged and that there are no fraudulent charges. Report any problems to the BBB immediately.
Tags: Identity Theft, identity theft protection, penny auctions
