How are penny auction sites not getting sued? MRP and MAP pricing

M

mpbiz

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Apr 29, 2010
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How are all of the penny auction sites getting away with advertising such low prices on brand name goods? I would think they would be violating all of the different MRP and MAP pricing policies set by these brands.

The only guess I have is that because it is an "auction" and you are not buying the product outright, that they are allowed to advertise such low prices.

I just find it hard to believe that apple would allow these sites to advertise brand new ipads for $50, regardless if it is an auction.

I've done some digging in google but haven't found anything solid yet. Any insight on this?
 


Take your pick:
1- Better to sue companies AFTER they accumulate wealth
2- They are small fry and not a big dot on the radar
3- They have insane profit margins, so they can buy retail
4- Many register offshore
5- People ALWAYS pay more than $50.
 
mpbiz said:
How are all of the penny auction sites getting away with advertising such low prices on brand name goods? I would think they would be violating all of the different MRP and MAP pricing policies set by these brands.

The only guess I have is that because it is an "auction" and you are not buying the product outright, that they are allowed to advertise such low prices.

I just find it hard to believe that apple would allow these sites to advertise brand new ipads for $50, regardless if it is an auction.

I've done some digging in google but haven't found anything solid yet. Any insight on this?
Click to expand...


I have absolutely no idea how it truly works, but I just had a theory.

Perhaps they, through some legality, are allowed to consider the "penny" their currency. So it really is like saying "This is my PingRoar auction! One PingRoar = $5 USD". They just get to confuse the issue and blur reality for idiots? Not sure. Sounded good.
 
probably because auction != direct sale?

If you offer a free ipad in a sweepstake, that doesn't violate MAP as well, right?
And if I start an ebay auction for a new ipad at $1, will Apple sue me?

I also believe those sites only advertise examples of not closed auctions (they never claim that you can buy the item at the advertised price, they just say it's the current auctions price)
 
I'm guessing that they didn't sign MAP. If they aren't aren't getting dealer pricing, they dont have to agree to anything, right?
 
Because the FTC, like any other governments org, takes a while to get going and bring down the hammer.

In my niche, it felt like forever that the penny stocks touts were running rampant, driving up clicks prices and pretty much busting everybody's balls.

Then one day... ...it was like somebody dropped a nuke. Great big radioactive hole in the ground, a few coachroaches still alive, but that was it.
 
They are just re-selling items they paid retail for. They don't have a wholesaler-distributor relationship with these brands.

They can't get sued just like ebay sellers can't get sued for selling iPhones for less than retail.

I heard a story about Apple getting pissy about companies giving away free iPads to their customers. Something about the negative connotation to "free". Even though it's a competition and the company is paying retail for it.

I imagine they are pissed at iPads and Macbooks being used in penny site display ads. Maybe they will drop the hammer soon enough?
 
Know that 1 cent bid you placed? It actually cost you more in the ball park of 50 cents to a dollar.

And every time you bid another penny? Yup, another 50 cents.

They aren't even close to selling at such low prices. Take a look at one of the terms of service. Interesting.

I ran a penny auction site a while back and started out bidding on a shelby mustang.

Holy fuck. Lol.
 
... they are getting sued pretty bad. Some people maintain good quality but that's on the top of the top. I've worked with dozens that have folded since starting in this niche.
 
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