![]() ![]() ![]() Because the company has not taken action to rectify the issues, on June 5 notified six state attorneys general and the FTC about its findings. warned the company in a letter dated May 25 about the deceptive advertising issues and that its pay-to-bid scheme - which generates at least half of DealDash’s revenue - constitutes a form of illegal gambling. More so than an auction, it is a gambling game with way too many variables that are not clear nor controllable to be promoted as discount shopping. ![]() Site is deceptive because it promotes itself as an auction when in reality everyone pays not just the winner. Hundreds of consumers, in fact, have complained to the FTC about the company’s deception. If they opt not to buy it from DealDash, they walk away from the auction having lost money.Įven if they do win, found, consumers can end up paying more for an item than its face value. But to take advantage of this option, consumers must have the economic means to finance the item, many of which cost thousands of dollars and some of which can be purchased for less on other sites. Consumers who do not win the item lose the purchased bids unless they elect to buy the product through the Buy It Now option. Bids, which can cost between 12 and 60 cents and come in bundles generally ranging from 220 to 5,000 bids, are expended the second a penny bid is placed on an item in an auction. Unlike a traditional auction house, on DealDash consumers have to pay for every penny bid they make. While the company, which was founded in Finland in 2009, maintains it is legitimate and that its “Buy it Now” feature shields it from being an illegal gambling site, those claims are undercut by how its penny auctions actually work. These include the true cost and actual likelihood of winning a bargain, the ability to get a refund, the real price of “bid packs,” and the company founder’s undisclosed connection to products DealDash sells on its site - all to entice consumers to its illegal gambling operation. And it is using those ad dollars to deceive consumers in its TV commercials, online ads, social media posts, and promotions on its mobile app and website on a myriad of issues. The Finnish company with offices in Minnesota spent more than $50 million on ads in 2016. DealDash, one of the largest penny auction sites in the world, markets itself as “the fair and honest bidding site.” But a investigation has found that the company is actually engaged in a widespread deceptive marketing campaign to lure bargain-hunting consumers to an illegal gambling site from which it profits handsomely while users typically lose money. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |