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.)

Trending Stories

New! Solutions to Common Financial Struggles for People 50 and Older

New! Solutions to Common Financial Struggles for People 50 and Older

We've partnered with the largest nonprofit consumer counseling agency in the country to offer solutions to the most common financial struggles facing seniors including Medicare assistance, debt and budget counseling, Social Security maximization, help with paying bills, reverse mortgage counseling and foreclosure prevention.

17 Places You Can (Legally) Download or Stream Free Movies and TV

7 Ways to Declutter You Probably Haven't Tried

Watch This: How to Spot a Liar

Comments

1,673 Active Deals

More Deals