Can You Really Buy an iPad for $1.10?, No..

If something sounds too good to be true, it is. So it should come as no surprise that those commercials featuring people who got HDTVs for $50 or iPads for $87.13 don't really tell the whole story. Auction sites like QuiBids, Beezid, HappyBidDay, and others might sound like they are magically underpriced versions of eBay, but they're not traditional auctions. Rather, they're penny-auction sites, a hybrid of auctions and gambling. On penny-auction sites, bids cost money and that money is gone whether or not you win. If that sounds a lot like gambling, more than a few have sued claiming that very thing. "Those opposed to penny auctions believe that they contain the three basic elements typically associated with gambling—prize, chance, and consideration," said Richard B. Newman, a state attorney general investigations lawyer with Hinch Newman LLP. "In order to remove the activity from the realm of gambling, the element of chance needs to not be present. Penny-auction website operators take the position that the service is an exercise based upon skill." So much about penny auctions is misleading and confusing that the "skill" seems to be just decoding how they work.
A Dollar and a Dream Some words of caution from QuiBids before you start. "After you get your first bid pack, a pop-up appears that prompts you to read QuiBids 101," said Blake Brown, social media manager at QuiBids. "There, you'll find all the information you'll need to prepare you to start bidding. Additionally, when a new bidder tries to bid on a big-ticket item, a similar pop-up appears encouraging the new bidder to start on smaller auctions until they get some experience under their belt. DealDash, meanwhile, offers a second shot if bidders go through their first bid pack without a win. "If you are still unhappy at this point we'll give you your money back for your first purchase," said Bart Jansen, director of operations at DealDash. The amount spent on bids is not included in the price when someone wins an item. So if they win a TV for $450, they'll pay that $450, plus however much they spent on bids. The winning bid prices advertised by penny-auction sites, however, do not include the cost of the actual bids. Time Is Relative But on penny-auction sites, the clock ticks ticks ticks down to a win...and then resets. On QuiBids and many other sites any bid in the last 20 seconds resets the clock to 20 seconds. As those minutes turn into hours, your fellow bidders might seem unrelenting and tireless. There's good reason for that.
First there's the word "penny." Each bid on penny-auction sites is said to be 1 cent but that's not its monetary value. Depending on the site, a 1-cent bid costs anywhere from 50 cents to $1. One of the first things to disabuse you of your big-screen, low-price dreams when signing up for QuiBids, for example, is the offer of a bid pack of 100 bids for $60.
One of the most satisfying or heartbreaking parts of an auction are those last few seconds. Whatever the outcome, the agony or the ecstasy isn't prolonged. On a site like eBay once time has run out, it's out.