Washington Sues Penny Auction Site

Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Image Not Available

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.)

Get smarter with your money!

Want the best money-news and tips to help you make more and spend less? Then sign up for the free Money Talks Newsletter to receive daily updates of personal finance news and advice, delivered straight to your inbox. Sign up for our free newsletter today.