During the countdown, any user with prepaid bids in their DealDash account can place the first bid. Once an auction begins, a 10-second clock begins to count down.
The hook is the 10-second countdown for each auction, Pstikyan says. Even ‘winning’ consumers unwittingly lose.”
When a consumer wins a DealDash ‘auction,’ the House wins. Thus, when a consumer loses a DealDash ‘auction,’ the House wins. “Meanwhile, DealDash auction losers - all but one participant in each auction - lose all of their prepaid ‘bids’ and walk away with nothing. “In fact, consumers are betting on products that are not worth even half their advertised values, and in some cases, not worth one tenth of the advertised value.”ĭealDash does not disclose how many prepaid bids its “winners” spend on an item, Pstikyan says, though it’s often more than the item is worth. “DealDash advertises its fake ‘brand name’ products at outrageously high retail prices -totally divorced from economic reality,” the complaint states. He says he spent still more money on the bids themselves, but lost most of the auctions, and even when he “wins,” he and others spend far more, through buying the right to bid and the bids, and the sale price, than the cheap, generic knockoffs are worth. Pstikyan says he spent $5,923 buying 44,250 bids on DealDash’s website in November and December 2016. It adds: “The problem is that DealDash is sham.” Pstikyan claims that Deal Dash actually is an illegal lottery, and that “the luxury ‘brand name’ products that DealDash offers consumers are not true luxury brands at all they are cheap, generic brands that do not sell in substantial volumes anywhere, except through DealDash and one of its affiliates.” "DealDash continually advertises to consumers that they can save up to 90%, or more, off brand name merchandise ranging from electronics, to furniture, to art, to flatware, to clothing and accessories." "Consumers pay money in advance for a certain number of intangible ‘bids,’ and then spend those bids in daily ‘auctions’ in hopes of winning the offered products at steep discounts," the complaint continues. While purportedly based in Finland by its 24-year-old “controlling owner,” William Wolfram, DealDash exclusively targets American consumers and ships merchandise only to the United States, the complaint states.ĭ “purports to offer consumers the chance to win brand name merchandise for a tiny fraction of the retail price," the complaint states. Grant Pstikyan filed the complaint against DealDash in Thursday with a federal judge in Minnesota.ĭealDash, founded in 2009, has registered millions of paying users throughout the United States, and American retirees are its largest demographic, according to the 35-page lawsuit. MINNEAPOLIS (CN) - The penny auction site DealDash made hundreds of thousands of dollars selling phony name-brand products, according to a class action from a Californian who says he lost thousands of dollars to the scam.
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