ED Magedson – Founder
dealdash SOPHISTICATED SCAM!!! Nationwide Nationwide
DealDash is an auction site that promises that you can "win" great deals on computers, electronics and gift cards for or you get "all your money back." Here is the truth:
1. Although the cost of each item goes up by a penny, each penny is one bid. A bid will cost you a minimum of 15 cents and up to 60 cents. For the sake of simple math, let's say a $100 gift card to Amazon sold for $30.00. At 60 cents a bid, that gift card really earned DealDash 3000 bids multiplied by 60 cents. Feeling lucky?
1 bid (1 penny) costs you 60 cents
10 bids (1 dime) costs you $6.00
100 bids ($1.00) costs you $60.00
1,000 bids ($10.00) costs you $600.00
If it sold at "just" $30, the $30 gift card really sold for $1,800!!! Even if someone was dumb enough to keep on going, the gift card cost $900 divided by 2 (the other bidder) or $450. Granted, there will be more than one other bidder at first, but I guarantee that it will NOT be a bargain 99.99999999% of the time.
2. If you even wonder if there are shill bidders invest some money in a site that monitors online auctions "live." These sites, will show you who is bidding, their bid history, and how many bids they already have in a particular auction. I did that with dealdashelite, and found definite proof of outright rip-off. Not only is there collusion, but shill bidding. Let me explainlain:
Collusion: I don't bid when there are too many bidders and wait till there are only 3 or 4 before joining in. After spending $200, the fourth bidder drops out. If I decide to skip a couple of bids, the second bidder immediately drops out, thus guaranteeing his buddy the win. If this happens once or twice, it can be attributed to coincidence, but not EVERY TIME. Certainly not when "the buddy" has just joined DealDash. (You can see how long the person has been a bidder).
Shill: Time and time again I found and photographed certain bidders continuing their bid long after they had spent more than the value of an item. For instance: I was bidding on an $800 Apple Ipad. I rejoined the bid when the item was already at $300 and having subscribed to a site that allowed me to see who was bidding and how much they had bid, I could tell that two of the bidders were right at $780. To me that meant that they would quit and buy the item. One of them did. The other one was still bidding after he had spent $1,200!!!! Keep in mind that it would have cost him $1,200 if he had won!!!! Obviously it would not matter if he "won" because either he was insane or a shill. Would you want to "win" a $800 and pay $1200 for it?
3. You will likely win when you first join, inexpensive and useless items. Items under $50 that will cost you about half but whose true retail value will be what you pay. In other words, display very inflated values. You get screwed once again and get suckered in. The concept of getting all your bids back sounds enticing. The bottom line is that you will get your bids back by purchasing the item, but you will be overpaying for the item. Your original investment is GONE!!!!! It is a sophisticated scam that is a thinly veiled attempt to have online gambling. Worse yet, there is no regulatory agency making sure that any online auction business operates with integrity.
This report was posted on Ripoff Report on 08/21/2013 10:46 AM and is a permanent record located here: http://www.ripoffreport.com/r/dealdash/Select-StateProvince/dealdash-SOPHISTICATED-SCAM-Nationwide-Nationwide-1077774. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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