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Thursday, January 20, 2011

Class Auction Suit Against Quibids



A class action lawsuit has been filed against QuiBids, LLC, by the law firm of Beckham & Mandel in the U.S. District Court for the Western District of Oklahoma alleging deceptive and unfair trade practices and fraud in its operation of QuiBids.com. I really don't think the charges against Quibids will stand. In my opinion, Quibids is the best penny auction site out there. They are also one of the most honest sites. The man that has filed the lawsuit was a customer that spent $50 in bids but did not win any item on Quibids.
For those who do not know much about Quibids, QuiBids.com is an interactive online website which allows its users to buy consumer products at greatly reduced prices by participating in online auctions. QuiBids.com claims that users of their website will pay 80-95% less than retail prices for thousands of consumer products, including high-end items such as HDTVs, laptops, and even automobiles, by bidding on their merchandise via online auctions. However, according to the suit, virtually none of the consumers who participate in these "auctions" will win the right to purchase such high-end item products at those greatly reduced prices.
The suit alleges that the failure to win auctions is costly to QuiBids customers. Each auction draws hundreds or thousands of bids purchased at $.60 per bid. The losing bidders do not get back the cost of the losing bids. Thus, the overwhelming majority of customers will lose money using the QuiBids website, according to the suit.
The suit alleges that QuiBids.com does not tell its customers that they have virtually no chance to come out ahead financially. Thus, while QuiBids.com passes itself off as a legitimate auction house, its business operation is more akin to a casino or a lottery.
As a result of QuiBids.com's alleged fraudulent and deceptive business practices, the suit alleges QuiBids has taken in millions of dollars. In one such auction, alleged in the suit, QuiBids' profits exceeded $12,000 from the bidding on a $1,500 HDTV. The ultimate winner paid $228.59, but 22,859 bids were purchased by all bidders in the total amount of $13,715.40. All of those bidders except one walked away with nothing, never knowing they were playing more of a lottery than bidding in an auction.
While QuiBids.com claims that it offers consumers great savings, "In reality, they are just taking people's money and giving them nothing in return," Roger Mandel, attorney for the Class, said. "If they want to operate their business like a lottery, then they need to tell people the truth about their chances of winning -- which are slim to none," said Mandel.
Complaint can be found at: http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.beckham-mandel.com&esheet=6528705&lan=en-US&anchor=www.beckham-mandel.com&index=1&md5=65b0f37095904f52a3b64ce4728551ac


Read more: http://www.bradenton.com/2010/11/30/2775912/law-firm-beckham-mandel-files.html#ixzz16pXehQdv

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