BidFun Naxopresence UK Ltd Quick way to lose your money - possibly legal but clearly shady Internet

What a clever internet "auction" business !
You log on, buy US$1 credits in multiples from US$20 through credit card, Paypal etc. then join in bidding on listed items. Every bid increases price by just one cent and seconds tick down to end-time - however, most items then go on for hours after that and who knows who will be the winner (and who knows whether all bidders are genuine ?).
So many people have spent their one-dollar credits in the process without winning.
Then finally the item "auction" closes with an iTouch going for, say, $34.65 or an Amazon $100 voucher going for $18.78 and the list of completed sale items shows each one bought at a saving of 82.6 % or whatever !
No accounting for all the dollars raked in by all us losers !  Put up an Amazon $100 voucher, collect maybe a few thousand dollars from various bidders along the way as they all get sucked in watching the seconds click down (then extend again with each fresh bid) and finally close it off showing one person winning it for a bargain price (ie the published winning bid) plus, of course, even his/her extra dollars spent during the chase.
How could authorities in the UK or any other of our advanced countries let such an operation become approved or its parent company be incorporated ?
With pokies and internet betting you know the gamble you are taking - BidFun is much more clever for the unsuspecting masses. Most might see it as like eBay - which it definitely is not !