As many of you already know, there was a class action lawsuit against Quibids in 2010. Several countries including the US have lingering worries on the legality of penny bidding sites. The Florida attorney general and other US leaders have publicly stated concern against penny auctions. However, in Europe, where most believe penny auctions started, penny bidding sites are perfectly legal. Most argue that penny bidding sites are illegal because they claim the sites are gambling sites. These worries are not in Europe where gambling law is much leaner.
The country of South Africa is voicing some major concern toward penny auctions. The country has classified penny auction sites as gambling. South Africa's biggest penny site, Smokoo is now illegal. Other major penny auction sites such as BidChaser, KoolDeals, and Viaziz are also deemed illegal. Sites like Smokoo are still live and currently running auctions. I also looked at Smokoo's Facebook page and there is no word on whether the site will close. To read more on the new laws in South Africa click here.
So what does this mean for Quibids? In my original post on the Quibids lawsuit I was very optimistic for Quibids. However, with new legislation in other countries deeming that penny auctions are gambling, it is hard to know what the future holds for Quibids. I hope that Quibids is big enough and strong enough to work through this. I also believe it will take years for legislation to affect Quibids.
Wednesday, March 16, 2011
