Online penny-auctions and Consumer Protection Regulations

[jes]

Online penny-auctions and Consumer Protection Regulations

New Consumer Protection Regulations, currently published as a draft for public comment, could be bad news for sites such as Smokoo, Bidchaser, Kooldeals, and ViaZiz

[Synaesthesia]

Smokoo is such a complicated system - I think it's fair to call it somewhat misleading. Not only do you have to multiply the value in rands by 20 or 100 to get the real value, but you aren't really bidding on an item! It's a total lottery as to who wins.

[Jan]

Smokoo is such a complicated system - I think it's fair to call it somewhat misleading. Not only do you have to multiply the value in rands by 20 or 100 to get the real value, but you aren't really bidding on an item! It's a total lottery as to who wins.

I don't think it's accurate to call it a lottery in the strict sense of the word as the winner isn't drawn from a pool of entrants. Similar to an auction it's about whoever bids last. It is still quite unlike conventional auctions though, as the eventual price you pay isn't just linked to the bid price but also the amount of bids you had to put in to win.

[Synaesthesia]

I don't think it's accurate to call it a lottery in the strict sense of the word as the winner isn't drawn from a pool of entrants. Similar to an auction it's about whoever bids last. It is still quite unlike conventional auctions though, as the eventual price you pay isn't just linked to the bid price but also the amount of bids you had to put in to win.

Sure, lottery is probably not the most apt word, but you really take a chance every time you bid, since there are 10 more seconds during which anyone can bid.

[Sodan]

I don't think it's accurate to call it a lottery in the strict sense of the word as the winner isn't drawn from a pool of entrants. Similar to an auction it's about whoever bids last. It is still quite unlike conventional auctions though, as the eventual price you pay isn't just linked to the bid price but also the amount of bids you had to put in to win.

It's not at all linked to the bid price.

Oh, actually, it is. My bad.

[Jan]

It's not at all linked to the bid price.

Really? I was under the impression that you still have to pay the few Rands worth on the bid price after winning. It's certainly not a major factor, but it is a variable in the equation.

[Sodan]

Really? I was under the impression that you still have to pay the few Rands worth on the bid price after winning. It's certainly not a major factor, but it is a variable in the equation.

You must have quoted me before I edited my post, and posted after I posted the edit. Busy day at the office?

[ave]

those sites are a waste of time and money

[Vlad]

finally...
i met one of the founders... told me that if parents spent all their money on his site trying to buy cheap xmas presents for their children, yet ended up losing (spending) so much they actually couldn't afford to buy anything at all in the end, he doesn't care.

sure, the site might be legal, but its immoral

[stricken]

Smokoo is such a complicated system...

There's nothing complicated about smokoo. Each bid adds either 5c or 1c to the items price (depending on the value of the product - it is advertised), so you can work out how many times people have bid, yet, each bid costs the bidder 1 credit = R5.00 to do so. Thus, even though there is a bidder that gets a product on the cheap, there are actually tens to hundreds of other bidders, thus paying for the product many times over.

Smokoo IS A SCAM! How dare they claim to be an Auction with a straight face. Easy come, easy go... OFF WITH THEIR HEADS!

On the other hand, if people are stupid enough to blow their money on this drivel, they probably deserve it.

[zamicro]

There's nothing complicated about smokoo. Each bid adds either 5c or 1c to the items price (depending on the value of the product - it is advertised), so you can work out how many times people have bid, yet, each bid costs the bidder 1 credit = R5.00 to do so. Thus, even though there is a bidder that gets a product on the cheap, there are actually tens to hundreds of other bidders, thus paying for the product many times over.

Smokoo IS A SCAM! How dare they claim to be an Auction with a straight face. Easy come, easy go... OFF WITH THEIR HEADS!

On the other hand, if people are stupid enough to blow their money on this drivel, they probably deserve it.

Nicely said. Especially the last 2 statements!

[rbarryza]

In terms of the Gambling Act, a gambling game is a game that requires one to pay (in any form) to play the game, and if by playing the game the person would be entitled to receive a “pay-out,” Michalson explained.

Wait, so any professional sport is gambling according to Michalson? Pro sportmens (like golfers) pay an entry fee to a tournament, and are entitled to receive a pay-out by playing the game.

[Trixanno]

Wait, so any professional sport is gambling according to Michalson? Pro sportmens (like golfers) pay an entry fee to a tournament, and are entitled to receive a pay-out by playing the game.

So are the machines in arcades. Some of the machines reward you with tokens, and those tokens you in turn use to buy the fluffy teddy bear for your Gfriend.

[nickhallsa]

So are the machines in arcades. Some of the machines reward you with tokens, and those tokens you in turn use to buy the fluffy teddy bear for your Gfriend.

These are also excluded from the term gambling games as they are considered "amusement games".

[quovadis]

Wait, so any professional sport is gambling according to Michalson? Pro sportmens (like golfers) pay an entry fee to a tournament, and are entitled to receive a pay-out by playing the game.

A closer analogy is that every time a player performs an action on the "field" they have to fork over some money for the pleasure of playing.

The problem with smokoo is automatic bids - the guy with the fattest wallet will most likely always win - there are a few lucky people but that is the exception rather than the rule. If the people were actually having to stay up and use stamina to keep the bids going instead of automatic bids then it would be more of a skill as a game of chance as it is now. Consider numerous of their auctions which have been in their "final" moments - ie. the last 10 seconds for 7 days straight 24/7/365 it does get a bit ridiculous.