A friend of mine told me about an email he received from DropCatch.com yesterday informing him of a refund that he is being given because of “bidding activity from users that were later suspended for non-payment might have affected the final price.”
There is an active thread on NamePros about the topic of non-paying bidders on DropCatch.com. The founders of DropCatch, Andrew Reberry and Jeff Reberry of TurnCommerce, addressed members’ concerns about non-paying bidders and the alleged irregular bidding activity in the NamePros thread. Andrew and Jeff also promised to investigate this issue, and it looks like they are taking action based on their findings. The objective was to identify what went wrong, make bidders whole, and improve the platform for the future to restore trust.
In the email sent to my friend, DropCatch referenced a blog post the company published in conjunction with the email. The blog post has additional information about the situation, what the company is doing to remedy it, and a go-forward plan to reduce the problem of non-paying bidders on the platform.
Here’s what the company said about the number of affected auctions and how bidders will be made whole:
“We have conducted an internal audit on every auction since we launched DropCatch.com. We have identified 297 auctions where the second highest bidder was later suspended for non-payment. As it could be argued these users might have not intended to successfully win (even though in most situations these users were valid paying customers), we want to presume the worst and treat every one of these situations as people having been “bid up”.
We believe the right thing to do is to make our auction winners whole. We are going above and beyond by reviewing every auction that has occurred in DropCatch since the beginning of time and accounting for the difference in the end price of auctions by subtracting non-paying users bids from the auction.”
I think it is commendable that Andrew and Jeff are taking the proactive measure of giving refunds to ensure that bidders who may have been impacted are reimbursed. If bidders are concerned their auctions may have been impacted but did not receive an email from the auction platform, they should contact DropCatch support to submit a ticket.