DealDash Sued over Fraud Allegations
DealDash, one of the largest and best known “penny auction” websites, has been accused of operating an “illegal gambling site” and using a “widespread deceptive marketing campaign to lure customers” to the site, according to the advertising watchdog group Truth in Advertising (TINA.org). TINA.org filed complaints against the company with the Federal Trade Commission and with attorneys general in Connecticut, Massachusetts, Minnesota, New York, Pennsylvania, and Washington, D.C. In order to make any bids, customers must buy from the site “bid packs” — bundles of several hundred to several thousand bids sold for 13 cents a piece. TINA.org says very few bidders actually get a deal on DealDash. And it claims the company’s ads are misleading because they don’t show the actual out-of-pocket cost winners paid to buy the merchandise.
http://www.nbcnews.com/business/consumer/dealdash-auction-site-accused-running-perverse-lotteries-n771166?cid=public-rss_20170630
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