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| Version 1 | Version 2 |
|---|---|
| Penny web auctions under scrutiny | Penny web auctions under scrutiny |
| (about 8 hours later) | |
| Online "penny auction" sites are similar to lotteries and should be regulated in the same way, according to a gambling expert. | 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. | 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. | The sites auction new items, often for a fraction of their retail price, and bidders pay up to £1.50 for each bid. |
| Professor Mark Griffiths of Nottingham Trent University believes the Gambling Commission "should look into this". | Professor Mark Griffiths of Nottingham Trent University believes the Gambling Commission "should look into this". |
| "I think bidding on penny auction sites is akin to a gambling-like experience," Professor Griffiths said. | "I think bidding on penny auction sites is akin to a gambling-like experience," Professor Griffiths said. |
| "Obviously, when people are bidding again and again and again and they don't actually win the item in the end, that's very much like gambling." I did not expect to get the Mini when I started bidding Sandeep Anantharaman | "Obviously, when people are bidding again and again and again and they don't actually win the item in the end, that's very much like gambling." I did not expect to get the Mini when I started bidding Sandeep Anantharaman |
| However, Juha Koski from online auction site Madbid.com disagrees: | However, Juha Koski from online auction site Madbid.com disagrees: |
| "We have two experts who have given us their opinion on this. | "We have two experts who have given us their opinion on this. |
| "This is definitely a game of skill and would not form under any circumstances under the definition of gambling." | "This is definitely a game of skill and would not form under any circumstances under the definition of gambling." |
| Happy winner | Happy winner |
| Successful bidders can win anything from a television to a car or a cash sum, for a fraction of its real cost. | Successful bidders can win anything from a television to a car or a cash sum, for a fraction of its real cost. |
| Sandeep Anantharaman is one bidder who has won in style. He bid less than £7 for a new Mini. Not surprisingly, he is delighted: | Sandeep Anantharaman is one bidder who has won in style. He bid less than £7 for a new Mini. Not surprisingly, he is delighted: |
| "I did not expect to get the Mini when I started bidding. But once I got the message from the auction site telling me I'd won, I couldn't believe it. " | "I did not expect to get the Mini when I started bidding. But once I got the message from the auction site telling me I'd won, I couldn't believe it. " |
| Penny auction sites have grown quickly and now have hundreds of thousands of users. | Penny auction sites have grown quickly and now have hundreds of thousands of users. |
| Concern | Concern |
| Unlike eBay, where you can bid for free, users have to pay between 40 pence and £1.50 to place a bid. Bids automatically rise by 1p at a time, and some people make repeated bids. | Unlike eBay, where you can bid for free, users have to pay between 40 pence and £1.50 to place a bid. Bids automatically rise by 1p at a time, and some people make repeated bids. |
| Tony Northcott of the Trading Standards Institute believes some people may spend more than they realise on bids. | Tony Northcott of the Trading Standards Institute believes some people may spend more than they realise on bids. |
| "My concern about these online penny auction sites is that people will bid for goods and not realise at the end of the day they may spend quite a large amount of money," he said. | "My concern about these online penny auction sites is that people will bid for goods and not realise at the end of the day they may spend quite a large amount of money," he said. |
| The Gambling Commission said it could not comment on individual sites and was not convinced that penny auctions amounted to gambling. | The Gambling Commission said it could not comment on individual sites and was not convinced that penny auctions amounted to gambling. |
| However, it added that it would keep a close eye on developments in this area. | However, it added that it would keep a close eye on developments in this area. |