Penny web auctions under scrutiny

[dipsydoodle]

Online "penny auction" sites are similar to lotteries and should be regulated in the same way, according to a gambling expert.

Penny auctions have gained popularity over the last few months and now have hundreds of thousands of users.

The sites auction new items, often for a fraction of their retail price, and bidders pay up to £1.50 for each bid.

http://news.bbc.co.uk/1/hi/business/7793054.stm

Are these running in the USA ?

[madrchsod]

1. nope...i think that would be illegal in the states

[pipoman]

2. It does appear to be a raffle which is considered gambling in the US

[dipsydoodle]

3. If it was a raffle

it would already have fallen foul of our own Lotteries Act. I don't know what to make it other than the fact that some sellers are getting absurd amounts over the value of the goods. It seems to be more of a gambling issue.

[pipoman]

4. It seems these things are oft redefined

people have been creatively exploiting raffle, gambling, pyramid schemes and other types of bunco for decades. It usually turns into an amendment to an existing law in the form of redefinition to include the variation...at least here in the US..