Penny Auctions Are At It Again…

December 31, 2012

During 2011, the BBB of Delaware received over 1000 complaints on a company called “BidRack". This is a “Penny Auction” website that offers an “Online Bidding” atmosphere on many high tech and popular items, including iPods, Kindles, computers, designer items and more.

Now, at the close of 2012 and the start of 2013, we are seeing similar activity with another online penny auction site called “ZBiddy”.

Online ads for online penny auctions are popping up everywhere, but your BBB warns consumers that they should do their research before making any bids.

With penny auctions, typically users set up an account and purchase bids with a debit or credit card. Each bid may cost less than a dollar and are often sold in bundles of 100 or more. Every item in the auction has a countdown clock and as people place bids, the cost of the item goes up and more time is added to the clock. Each bid costs money, and even if you don’t win the product, you still have to pay for those bids placed.

Consumers have reported to us that when they sign up for these services, they are under the understanding that it is "Free". However, upon registration, their credit card is then charged a fee, often around $99. The BBB strongly encourages you to read carefully the terms and conditions of any offer. Be sure to pay close attention to details on signup and annual fees, minimum bidding requirements, maximum prize amounts and how to get a refund.

BBB encourages you to file your complaints with us.

To view a report on ZBiddy visit:

To view the report on BidRack visit: