TALLAHASSEE, Fla. (Legal Newsline) - Florida Attorney General Pam Bondi announced a $425,000 settlement on Monday with a penny auction website to resolve allegations it used programming code to deceive consumers throughout the U.S.
Arrow Outlet LLC, doing business as ArrowOutlet.com, allowed users to purchase and place bids on a variety of consumer goods. Arrow allegedly engineered an auto-bid script that artificially inflated the number of bids necessary to win a given auction. Arrow allegedly used the auto-bid script to place bids at certain intervals, which prolonged the auction, increased the number of bids purchased and used, and prevented actual users from winning the items.
Eligible consumers have until August 16 to file a claim. Consumers who purchased bids at Arrow's penny auction site and were Florida residents at the time the bids were purchased are eligible. Current Florida residents who purchased bids at the auction site before moving to the state are also eligible to file a claim.
"I encourage all Floridians who may be eligible for restitution to submit their claims before the August 16 deadline," Bondi said. "We will continue our efforts to protect consumers."
Under the terms of the settlement, Arrow will pay $425,000 in consumer restitution and change its business practices. Arrow agreed to no longer create, administer, run, purchase or use a penny auction website to generate income.