Swoopo in a international Internet Ponzi scheme masquerading as an auction site.
Swoopo is the lastest combination of a ponzi, pyramid, auction and bidding fraud. I believe it violates existing state and federal laws regarding auctions since it is not actually an auction at all since the bidders do not actually bid, they just pay Swoopo $0.75 per "bid" to increment the last bid by $0.15. Also Swoopo is taking revenue far in excess of the amount of the value of the goods sold. Also shipping charges are not disclosed in advance or agreed to in advance. I just watched an Apple IPOD valued at $229 sell for $104.25. If the bidding started at $0 for instance then Swoopo took in $625.50 calculated as (104.25/0.15)*0.75) 104.25. This is clearly a ponzi/pyramid scheme since it depends upon sacrificial bidders all chipping in to the final sales price at the rate of $0.15 per bid at a cost of $0.75 per bid.
If you consider this legal please advise me and I will start doing this too, but to me this is an International scam on a large scale.
PS Swoopo must be making tons of money and is a very juicy target. I would like to see each and every employee, owner and even the janitor sued for all they have an go to jail.
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