July 2017: Plaintiffs filed an amended complaint adding two named plaintiffs, as well as a summary of TINA.org’s investigation and complaints filed with federal and state regulators. The amended complaint also adds allegations that the company deceptively advertises a perpetual sale by claiming that the regular price of bids is 60 cents per bid when, according to plaintiffs, the bids are never offered at the “regular” price but rather are regularly offered for less than 20 cents.
April 2017: A false advertising class-action lawsuit was filed against DealDash, Inc., a company that runs a penny auction website. According to the complaint, the company:
- misleadingly markets certain products as expensive, luxury, brand name products when they are actually cheap, generic brands that are not worth the advertised value;
- advertises recent “Winners” of products without disclosing the true cost of obtaining the products (i.e., it omits the amount consumers paid to bid to win the products); and
- runs illegal lotteries on its website instead of auctions.
(Pstikyan et al v. DealDash, Inc., Case No. 17-cv-1164, D. MN.)
For more information about DealDash and TINA.org’s coverage of the website, click here.
When a complaint is dismissed with prejudice, it cannot be refiled.