Swoopo Seems Safe From Legal Action in EU

When we began researching more into Swoopo following our initial post on the unusual auction site, we also looked into whether the business model could possibly be challenged under EU laws, where the company has its primary base of operations.

Technologizer got in contact with the European Commission, the regulatory body of the EU. The EC then took a closer look at Swoopo apparently, and has gotten back to us saying the site appears to be following all laws.

Even though complains in Europe have already appeared online, the EC itself has as of yet not received any complaints from residents. Moreover, the site appears to be following the rules governing online auctions. Spokesperson Carol Franklin had this to say:

“The Unfair Commercial Practices Directive (2005/29/EC) applies to commercial practices of this kind. Under this Directive, the consumer must receive the material information he needs in order to decide whether to purchase an item or place a bid on an auction site. Complete information about the price and the costs involved must be provided. In the case of auction sites, consumers must therefore be clearly informed whether they will be charged for bids that will not lead to an eventual purchase. Omitting to provide such information would constitute a misleading practice which is banned under the Directive.”

Franklin added that if users did indeed have a problem with Swoopo, they would need to contact their local consumer authority who would then decide if the site is acting against the directive, which is incorporated into local law.

So all that grumbling out there seems to be a whole lotta nothing, or at least nobody’s gotten upset enough over losing an auction to get the authorities involved just yet.


4 comments

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  1. Enrique Terry November 7, 2008 at 7:17 pm #

    Went to auction sites and chilled out. Seeing that getting to auction sites requires a misleading practice you see where this is going. I think I will skip auction sites, I’m not that interested.

  2. David November 15, 2008 at 11:48 am #

    Hey,

    Nice article. I actually pulled a bunch of their ended auctions and did some research that I have for sale on my website (www.beatswoopo.com) which should help stop people from losing so much money. It gives an idea of time of day to bid on certain products… etc. Well, I hope it helps, and feel free to email me if you have any questions!

    -Dave

    [email protected]

  3. Mal January 8, 2009 at 2:05 pm #

    Try asking swoopo why a 2&3sec internet lag seems a justifiable excuse for, me and many others losing auctions.

    I would go into more detail but it would take too long. I can say this paticular problem only arises when there are last second bidders and one bibbutler at the final shootout so to speak. suddenly after placing a bid on the 2 or 3sec mark the bid is not accepted and the BB wins. the above is the excuse they give but according to various spokesmen you should be able to bid upto and including the zero.??????????

  4. Sarcasmo March 17, 2009 at 2:40 pm #

    Who regulates this website in order to prevent fraud? Due to the nature of their “auction” model (read: gimmicky gambling model), it would be in Swoopo’s best interests to bid up the items available on their site and goad people into bidding wars. More bids means significantly more money for them.