The penny auction business - is it legal?

Our clients ask us this question from time to time.

Indeed, about two years ago such a discussion took place. Some commentators argued that penny auctions are gambling. But very quickly it became clear, that if an auction is held fairly, it is not gambling.

We believe that banks have highly qualified lawyers, so we provide here two links to information about an investment of the French bank "Crédit Agricole" in the German penny auction Dealstreet.com.

http://www.ca-privateequity.com/en/att00000616/UKUpsideShopping4_12_09.pdf (PDF)

http://www.credit-agricole.com/banking-:-account-bank-and-business-banking-171/press-releases-195/general-press-releases-203/credit-agricole-private-equity-invests-in-germany-upside-shopping-gmbh-4132.html (HTML)


In this post we would like to encourage other investors to invest more boldly in the penny auction business. And for this we are opening a Penny Auction Investment Club.

If you open a penny auction and need further investments - contact our Penny Auction Investment Club. If you are a venture capitalist looking for investment objects - let us know.
We guarantee the confidentiality of your information and your private data.

We welcome your e-mails at mail@softmedia.biz

Penny auction blog

With this post we want to thank those of our readers who do not just read our blog, but also actively participate in the discussion, send us comments, questions and suggestions.

We are interested in active contacts through this blog, because the penny auction business is rather young and each of us can take part in its development.

So, we are looking forward to your letters, comments, and questions. We welcome any questions. Of course, we reserve the right to not answer all the questions, and to not publish all the comments.

We welcome you to discuss with us penny and other types of auctions and their software!

About penny auction with accelerating timer

In addition to our previous post about how to start a penny auction slowly, we would like to tell you about the system, that is used at Bidrivals.com and Ziinga.com.

1) the auction is started with a countdown timer that is set to 5 hours, for instance.
2) all bids made to the auction before the countdown goes below 15 secs do nothing to the timer. It just keeps counting down.
3) any bid placed within the last 15 secs resets the time to 15 secs.

Interesting that there is no information about this system on the above mentioned websites.