You may have seen one of those flashy, convincing DealDash commercials on your TV screen at some point. But, DealDash has actually received several complaints — from fake advertising to refund issues. In this article, we’ll tell you more about the DealDash scam, how DealDash works, and what you can do to avoid this kind of scam. Keep scrolling!
Established in 2009, DealDash is a penny auction site that allows you to bid for and buy a product at the price you’ve bid, given that the final bidder is you. However, it’s different from regular auction sites, like eBay. On eBay, you don’t pay at all if you’re outbid. Only the bidder that won the auction does.
However, with DealDash, all bidders need to pay anything from 14 to 60 cents. Then, each bid raises the product’s price by one cent. These bids are not refundable, and you will have to keep using another bid to participate in the auction.
Sold in packs of 100 (or more), these bids allow the company to make more money from you. They get the money you pay for the final bid plus all the other bids made before that.
DealDash Scam: Different Customer Complaints
Some people debate whether DealDash is a scam or not. They have been receiving more and more complaints from customers due to false advertising, non-disclosure of prepaid bids, and multiple refund issues.
You may have seen in DealDash ads that you can save up to 90% or even more from bidding for different luxury brands — from furniture and clothing to art. For instance, you can get a MacBook for only $10 or an iPad for only $5.
However, TINA.org filed a complaint against DealDash with the Federal Trade Commission (FTC) and attorney generals in different states, like Minnesota, New York, and Connecticut. They said that the marketing claim of getting the products at incredibly low rates is simply not true. While they advertise luxury brands, another lawsuit from a man in California emphasized that they’re not real luxury brands but generic brands.
Non-Disclosure of Prepaid Bids
In relation to false advertising, DealDash also does not reveal the real amount that winners spend on bidding just to get the product, which is usually higher than the actual value of the item. Meanwhile, all bidders, except the winner, will lose their prepaid bids. So, if you lose your bid, the company wins. If you win your bid, the company still wins. And, even if you think you win, you’re actually still losing money.
Tina.org stated that DealDash has received over 600 complaints from users since March 2011. Among these complaints, about two-thirds have something to do with refund problems. You can also see these complaints on Better Business Bureau (BBB). While DealDash claims to offer a 100% money-back guarantee, the catch is that it is only applicable to the first bid pack you purchase, with several other exceptions.
How To Avoid This DealDash Scam
To protect yourself from a DealDash scam and other penny auction sites, perform the following steps:
- Do your research and enter the word “complaint” together with the company name. Note that DealDash has an A+ rating from the BBB site. However, it has received several complaints from consumers. So, go beyond the rating, and see why people are saying it’s a scam.
- Learn various auction terms, including how the site works. Go through the details of the actual costs, including possible transaction fees in case you win the bid.
- Before making your bid, look at auctions on similar items so you can see how DealDash is not like regular auction sites and actually takes more money than you’re supposed to be saving.
- Find out the retail price of the product you want to purchase before bidding. Doing so can help you see that you may just be overpaying and wasting money.
How To Report This DealDash Scam
If you think you’re one of the victims of a DealDash scam or you know someone who has been scammed, send a report to the Federal Trade Commission. You only need to visit the website and click the Report Now option. Then, you will have to enter information beneficial for the investigation, such as the company name, telephone number, address, the amount of money you lost, the product you bid on, and more. The FTC may also contact you if they need to gather more information to proceed with the investigation.
Social Catfish is Here to Help You!
At Social Catfish, we want to help you verify the identities of those who might seem suspicious to you. If you have their name, email address, phone number, social media username, or image, you can reverse search and see who the suspected person was that you’ve been in contact with after reading about this DealDash scam. If you were involved in a scam, make sure to report it to the FTC as well.