Online Penny Auctions

The firm’s electronic commerce and regulatory compliance legal services also include the legal management of a relatively new phenomenon occurring on the Internet, “online penny auctions.” In a penny auction, an individual pays a specified amount of money to bid against others for an item at an extremely reduced price.  If you operate a penny auction website, it is vital that you recognize the increased risks and costs of violating applicable laws and regulation regimes.  We can guide you through this process and provide you with a solid set of governing documents and a compliant operating plan that ensures safe, reliable, and profitable online bidding for both businesses and consumers.

If you are a penny auction owner, it is critical that you consult with an experienced eCommerce attorney with the background to advise you about the latest information in the online penny auction industry, specifically with regard to fair and safe bidding practices.  Hinch Newman offers valuable information to both start-up and established penny auction owners that are interested in learning about available certification resources.  Industry specific certification resources inform existing and potential customers that your site is a legitimately safe place to bid and that your identity and business information has been verified.  The firm can assist you to assure consumers that your penny auction site is reliable, that it does not sell used, stolen, or faulty goods, that it uses certified auction script vendors, that it offers excellent customer service, and that it does not utilize “shill” auto bidders.

Conversely, if you believe that you have been or may potentially become a victim of a penny auction site scam, we can assist.  Hinch Newman will provide you with tips on how to avoid being scammed, in the first place, and will assist you with an investigation and examination into the site in question in the event of allegedly illegal activities.

Please contact us at info@hinchnewman.com or via our Free Online Case Submission Form to speak with an experienced Internet lawyer who is knowledgeable about best-practices regarding the operation of penny auction websites.