ID :
155167
Wed, 12/29/2010 - 06:02
Auther :
Shortlink :
https://www.oananews.org//node/155167
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Complaints against new type of Internet auction growing+
TOKYO, Dec. 28 Kyodo -
An increasing number of complaints against a new type of Internet auction
called ''penny auctions'' have been filed with consumer affairs centers across
Japan, center sources said Tuesday.
Participants in the penny auctions complain that they have to pay
non-refundable commission fees in order to place their bids, which they then
lose in most cases, the sources said.
Most of such auction operators state that participants can purchase products,
such as large-sized TV sets and personal computers, at discount prices. In one
case, the auctioneer says a large TV set can be bought for only 544 yen.
If the operator fails to clearly declare that the commission charges will not
be refunded even if the participants do not win the bids, it could conflict
with the law banning unjustifiable premiums and misleading representations, the
sources said.
The Consumer Affairs Agency is now investigating the complaints and will issue
warnings to consumers as early as next month, its sources said.
The state-backed National Consumer Affairs Center of Japan said it had received
a total of 150 complaints over penny auctions by the end of November.
Some of the complainants said that auction operators may have used confederates
to prevent participants from winning bids so they could collect commission
fees, the agency sources said.
The penny auction system was devised in Germany around 2005. In Japan, the
number of penny auction operators began to increase in late 2009, and more than
100 websites for such auctions are currently operating.
Participants need to pay around 70 yen in non-refundable fees for each bid. In
cases of auctioning of popular articles, the number of bids can top 10,000
before the final bid price is set.
The auction operator can gain profits through the large amount of
non-refundable bid fees, which exceed the purchase prices of the goods for
auction.
Lawyer Yoji Ochiai, an expert on Internet problems, said some people say penny
auctions are equivalent to fraud or gambling but remain in a legally gray area.
Ochiai said the scheme is no doubt fraudulent if the auction operator uses
confederates to prevent participants from winning the bids.
==Kyodo
An increasing number of complaints against a new type of Internet auction
called ''penny auctions'' have been filed with consumer affairs centers across
Japan, center sources said Tuesday.
Participants in the penny auctions complain that they have to pay
non-refundable commission fees in order to place their bids, which they then
lose in most cases, the sources said.
Most of such auction operators state that participants can purchase products,
such as large-sized TV sets and personal computers, at discount prices. In one
case, the auctioneer says a large TV set can be bought for only 544 yen.
If the operator fails to clearly declare that the commission charges will not
be refunded even if the participants do not win the bids, it could conflict
with the law banning unjustifiable premiums and misleading representations, the
sources said.
The Consumer Affairs Agency is now investigating the complaints and will issue
warnings to consumers as early as next month, its sources said.
The state-backed National Consumer Affairs Center of Japan said it had received
a total of 150 complaints over penny auctions by the end of November.
Some of the complainants said that auction operators may have used confederates
to prevent participants from winning bids so they could collect commission
fees, the agency sources said.
The penny auction system was devised in Germany around 2005. In Japan, the
number of penny auction operators began to increase in late 2009, and more than
100 websites for such auctions are currently operating.
Participants need to pay around 70 yen in non-refundable fees for each bid. In
cases of auctioning of popular articles, the number of bids can top 10,000
before the final bid price is set.
The auction operator can gain profits through the large amount of
non-refundable bid fees, which exceed the purchase prices of the goods for
auction.
Lawyer Yoji Ochiai, an expert on Internet problems, said some people say penny
auctions are equivalent to fraud or gambling but remain in a legally gray area.
Ochiai said the scheme is no doubt fraudulent if the auction operator uses
confederates to prevent participants from winning the bids.
==Kyodo
