DealDash.com: Blatant Scam, Exxagerated Advertisements, or just legitimate Puffery?

DealDash.com: Blatant Scam, Falsely Advertised, or just legitimate Puffery?

If you watch any television at all, by now you've seen DealDash's commercials with people excitedly claiming how they got iPads, TV's computer's, bicycles, etc, for ridiculously low prices, like an iPad for $10.

Is this even possible?  Well, yes, in theory.  But so is getting hit by an asteroid or winning $100,000,000 in a lottery.  Do you know anyone who was struck by an asteroid or won a hundren million dollars?

How does DealDash.com work?

Penny auctions like DealDash, use a bidding fee auction in which you pay a non-refundable fee to buy a packet of bids. Then when you bid, every incremental bid is deducted from your packet.. And each time you bid, you raise the price of the item by 1 cent. Bids in the last 9 seconds extend the auction by 10 seconds. The auction ends if no one bids more than the current bid in the last 10 seconds.

This means that DealDash gets paid for each bid and also the final price for which the item is sold.

Summary of how it works

• You buy a packet of bids ) before you can take part in an auction
• Bids cost $0.15 per bid as of May 2020
• Each bid raises the price by $0.01.
• The auction clock restarts from 10 seconds every time someone bids.
• If no new bids are placed before the clock runs out, the last bidder wins.

Bottom Line

We rate DealDash a grossly misrepresented product or service. Frankly, we think you'd be a complete moron to use their service.

What to do if you are unhappy with a DealDash transaction?

Obviously start with DealDash itself, but if they won't make it right, it seems that the Better Business Bureau has had very good success getting them to resolve issue with customers.  File a Better Business Bureau complaint here.

References and more information about DealDash.com.

1. AARP - are they telling the whole truth? "No," says Colleen Tressler of the Federal Trade Commission. Her agency recently issued a consumer alert, warning about the pitfalls of penny auction websites. "Consumers get into problems because penny auction sites don't work like other auctions that the consumer may be familiar with," Tressler said.
2. CourtHouseNews.com: 2017 - The penny auction site DealDash made hundreds of thousands of dollars selling phony name-brand products, according to a class action from a Californian who says he lost thousands of dollars to the scam. Grant Pstikyan filed the complaint against DealDash in Thursday with a federal judge in Minnesota.
3. Better Business Bureau:  A+ rating, 30 total complaints in the last 3 years, of those, 12 complaints were closed in last 12 months. The BBB has good results in resolving customer complaints.
4. Consumer.Press: 2013 - Is DealDash Legit Or A Scam? The Devil Is In The Details! DealDash.com works much like Quibids, which we took a look at a couple of weeks ago. Both sites are – bidding fee – auction sites. They are very different from a regular auction site like eBay. On eBay, if a bidder is outbid, they don’t pay anything. Only the bidder that ‘wins’ the auction pays. On DealDash – every – bidder pays a bidding fee – every – time they bid. The cost? 60¢ per bid. Each bid raises the price of the item by 1¢.
5. Forbes.com - 2014 - Are Penny Auction Sites Seen On TV For Real?. Penny auction sites such as DealDash.com and Gankit.com where — they say — you can buy an iPad for $37 or a 55-inch TV for less than $30. The ads promise you can save up to 99% on tech products, athletic gear, household gadgets and a variety of brand-name goods.
   There could be some amazing bargains for a few lucky shoppers who have the time, are willing to take a chance and have learned how these sites work. But for most online shoppers, penny auction sites are money-losing pits that could be penny dreadful.
6. NBC News: 2017. DealDash Penny Auction Sued for Running 'Perverse Lotteries' - 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).
7. RipOffReport.com: They claim to be a fair and honest site, But it is site that every time the time goes down to zero it shows that someone has placed a bet, They advertise a full refund of your money, but there is nothing on the site to let you get your money back. This type of betting is a RIP OFF and so does everyone I know.
8. TruthInAdvertising.org: DEALDASH’D: A LOSING BET FOR CONSUMERS - ... using those ad dollars to deceive consumers in its TV commercials, online ads, social media posts, and promotions on its mobile app and website on a myriad of issues. These include the true cost and actual likelihood of winning a bargain, the ability to get a refund, the real price of “bid packs,” and the company founder’s undisclosed connection to products DealDash sells on its site — all to entice consumers to its illegal gambling operation.
   

General Auction Warning signs

Some clues that a fraud is about to be committed against you are the following behaviors:

If you are the buyer:

• Whoops! I'm no longer in the U.S. - The seller posts the auction as if he resides in the United States, then responds to victims with a congratulatory email stating he is outside the United States for business reasons, family emergency, etc. Similarly, beware of sellers who post the auction under one name, and ask for the funds to be transferred to another individual.
• Wire me the money! - The seller requests funds to be wired directly to him/her via Western Union, MoneyGram, or bank-to-bank wire transfer. By using these services, the money is virtually unrecoverable with no recourse for the victim.
• I'm the manufacturer's dealer in ____ - Sellers acting as authorized dealers or factory representatives in countries where there would be no such dealers should be avoided.

If you are the seller

• Oh, ship it to me this way, so I can avoid customs - Buyers who ask for the purchase to be shipped using a certain method to avoid customs or taxes inside another country should be avoided.
• Ship it to me here - Be suspect of any credit card purchases where the address of the card holder does not match the shipping address. Of course, it may just be that the buyer uses a bill paying service or is traveling. In any case, always receive the card holder's authorization before shipping any products.

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What to do if you are scammed

Steps to take if victimized:

1. File a complaint with the online auction company. In order to be considered for eBay's Fraud Protection Program, you should submit an online Fraud Complaint with 90 days after the listing end-date.
2. File a complaint with the Internet Crime Complaint Center.
3. Contact law enforcement officials at the local and state level (your local and state police departments).
4. Also contact law enforcement officials in the perpetrator's town & state.
5. File a complaint with the shipper USPS, UPS, Fed-Ex, etc.
6. File a complaint with the National Fraud Information Center
7. File a complaint with the Better Business Bureau.
8. Click here to send copies of the correspondence, emails, etc. to Consumer Fraud Reporting.
   

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Tips for buyers - Avoiding Internet Auction Frauds

Listed below are tips to protect yourself and your family from various forms of Internet fraud:

• Determine what method of payment the seller is asking from the buyer and where he/she is asking to send payment.
• When purchasing products over the Internet, it's best to use your credit card rather than PayPal or your debit card. That way, if you have any problems, you have recourse to dispute the charges through your credit-card company before the payment is actually made.
• Examine the feedback on the seller.
• Learn as much as possible about the seller, especially if the only information you have is an e-mail address. If it is a business, check the Better Business Bureau where the seller/business is located.
• Understand as much as possible about how the auction works, what your obligations are as a buyer, and what the seller's obligations are before you bid.
• Find out what actions the web site/company takes if a problem occurs and consider insuring the transaction and shipment.
• If a problem occurs with the auction transaction, it could be much more difficult if the seller is located outside the US because of the difference in laws.
• Ask the seller about when delivery can be expected and if there is a problem with the merchandise is it covered by a warranty or can you exchange it.
• Find out if shipping and delivery are included in the auction price or are additional costs so there are no unexpected costs.
• There should be no reason to ever give out your social security number or drivers license number to the seller.

If you believe you may have fallen victim to this type of scam and wish to report it, please file a complaint with the U.S. government Internet Fraud Complaints Center.  And tell us about it, so we can warn others!

In addition, visit eBay and PayPal for additional security alerts and fraud prevention tips.

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See these sample frauds to help in knowing what to look for:

1. Romanian eBay scammers caught!
2. Buy my puppy!
3. eBay/Auction Listers/Sales Position/P-Time/F-time...
4. Ebay scam
5. Another Ebay scam
6. Online Auction Motorcycle Scams - Robert James, r.james101@yahoo.com
7. Wii Game Console, Another Romanian Scammer, Ciprian Paul Bradeanu, globalaircargoltd.com, Romania, "You have to make the payment exactly how we agreed on via Western Union. "
8. Mandy Coker, ashley_terpeza018, bbb
   "The payment (Check)will contain some extra money which you will help me get across to the shipper as we have arranged with a shipper to come and pick up the item"
    

How to Buy from Online Auctions

See this page for tips and guidelines to buy online without getting scammed

And please let us know about any suspicious calls or emails you receive.  We look for patterns so that we can alert the authorities and victims to new scams, before it is too late!

 

 

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For a comprehensive list of national and international agencies to report scams, see this page.