Washington Sues Penny Auction Site

The state says Arrow Outlet cheated and made customers pay more than necessary to win auctions.

Washington Sues Penny Auction Site Photo (cc) by StockMonkeys.com

Seattle PI reports…

“Arrow Outlet programmed ‘bidbots,’ software that runs – that cheats – automatically,” Washington State Attorney General Rob McKenna said in a statement. “These programs created bogus bids that rigged results. And the bidbots sometimes won, allowing Arrow Outlet to walk away with all the bidders’ money and the auction item.”

The site, ArrowOutlet.com, required users to purchase bidding packages that cost at least $20. Auctions could be prolonged by new bids. It’s now being shut down, and will pay $20,000 in attorney fees plus pay $50,000 to start a restitution fund for consumers who were affected. (Claims for that begin in two months.)

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