Being able to judge if a penny auction is a legitimate business, is possible. Search the internet, check out the Better Business Bureau and see if there is a complaint against the company. Read the comments, and don’t assume it wouldn’t happen to you.
If you are thinking about bidding, then reading the companies terms and conditions. They should give you the current information on how to place a bid and the costs involved. It is not free to bid on these sites, each bid costs money and this is where the companies make their money, enabling them to sell the items at the final low price.
Some penny auctions admit they lose money on some of the items sold, but in business, they are there to make money and they do this by enticing the bidder in.
Where once there were loads of penny auction sites, many have closed and some shut by legal intervention. Customer complaints and negative reviews run very high in the penny auction business. With customer’s spending money and having won nothing.
Therefore, the penny auction sites look good on the outside, but when you realise the amount of money you could spend with nothing at the end, is it worth risking money just to get an item at a reduced price?
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