Is DealDash a Scam?

If you’re thinking of shopping on DealDash, you need to know: Is DealDash a scam? 

Below, we explain whether DealDash is a scam and discuss some steps you can take to improve your safety when shopping on this site. 

What Is DealDash? 

DealDash is a shopping platform and a penny auction where you can bid on brand-new items, often at discounted prices. 

Unlike traditional auctions, you have to buy bids in advance and use them to take part in the auction. Bids cost between $0.12 to $0.20. 

Each bid raises the item’s price by one cent and resets a countdown timer (usually by 9 seconds). DealDash says that bids make “the massive 95% off savings possible!”

If there are no new bids before the timer runs out and you are the last person to bid, you win the item and pay the final auction price. If you don’t win an auction, you can purchase the item at retail price and get your spent bids refunded.

Aside from “loyal customers” agreeing to pay a small service fee for each bid, DealDash says it can offer great deals because it has a network of suppliers with overstocked warehouses. Plus, they say they like to feature items from underexposed designers and producers globally. 

Is DealDash a Scam?

Depends on your definition of “scam,” but technically, no. 

DealDash is very upfront about how it works. In fact, DealDash is so transparent it even discloses past winners’ total costs. 

While some users can get very lucky, others can pay more than retail for their items. There’s no evidence of DealDash using bots to manipulate auctions.

As the online magazine SlashGear writes, one winner paid $2,804.12 for a bundle (which included a base model M2 MacBook Pro, Schultz SQ4 earphones, and a Monolith Pioneer backpack) worth $2,209, losing $595.12 compared to retail (and the “Buy It Now” price). On the other hand, one winner ended up getting the same bundle for just $311.80. 

Overall, when SlashGear looked at a sample of seven winners, four paid hundreds of dollars over the retail price. 

And although users can get their bids back to buy the item at full retail price, because some auctions bundle items together, the total retail price can be much higher than just the item the user wanted. 

So, going back to the bundle mentioned above, a user who only wanted the MacBook Pro would have to overpay for accessories they didn’t need to reclaim their lost bids.

It’s not just bundles, either. The independent, non-profit advertising watchdog organization Truth In Advertising (TINA) highlighted a case where a $100 gift card was sold for over $115. 

According to NBC News, DealDash “could have grossed $1,497.47 for the $100 gift card while the non-winning bidders who didn’t opt to then buy it at full retail price lost the money they spent playing.”

TINA noted that in the 2015 edition of its Terms of Use, the company said customers “are likely to spend more money than [they] may receive in merchandise value.” The statement has since been removed. 

DealDash doesn’t guarantee manufacturer warranties.

At the time of writing, DealDash has a 2.4 out of 5.0 rating (from 191 rated reviews) on PissedConsumer. It has an “A” Better Business Bureau rating.  

The DealDash app has a 4.4 out of 5.0-star rating (out of 45.1k ratings) on the App Store and a 3.9 out of 5.0-star rating (out of 48,429 ratings) on Google Play. 

Security

DealDash uses SSL encryption to ensure customer transactions are secure and keeps your personal data behind networks designed to be secure and only accessible to a limited number of individuals.  

The company says it implements a “variety of security measures” but does not go into detail as to what these are. 

Privacy 

In its privacy policy, DealDash outlines what data it collects and how it uses it. 

It says it collects user personal information (e.g., name, email address, phone number, address, and payment details), usage data (e.g., DealDash username, IP address, frequency and analysis of action participation, the auctions you view but don’t participate in, etc.), and information from when you search, communication with customer support, etc. 

The company collects the above data mainly to provide you with a customized experience, prevent illegal activities, and for advertising and marketing purposes. 

DealDash says it won’t share your personal information with third parties for these third parties’ own purposes unless you consent to such sharing. 

DealDash has not been rated by Terms of Service; Didn’t Read (ToS;DR), a project that rates internet services’ terms of service and privacy policies. 

However, ToS;DR notes as concerns that by using DealDash, you waive your right to a class action and that the service assumes consent from usage (instead of asking you). Plus, it collects your IP address, which can be used to determine your approximate location.

On the plus side, ToS;DR says that you can leave this service at any time and opt out of promotional communications.

So, Should You Shop on DealDash?

Depends on what you’re looking for. 

If a competitive auction experience sounds fun to you and you are okay with potential losses, DealDash can be a good shopping platform. 

But if you just want good deals without risk, you’re better off shopping elsewhere. 

How to Use DealDash Safely

Here are some tips for a safer experience while shopping on DealDash.

• Set a budget (and stick to it). Decide how much money you’re willing to lose before you start bidding, and treat bids as an expense, not an investment. Don’t chase losses. If you keep bidding just to “win,” chances are, you’ll spend more than retail. 
• Understand the true cost of bidding. Bids are non-refundable unless you use the “Buy It Now” (BIN) feature. Since each bid increases the auction price by just $0.01, closing an auction takes hundreds (or even thousands) of bids.
• Watch out for bundled items. Sometimes, DealDash adds accessories to increase the retail price, making BIN impractical.
• Read reviews. Some brands sold on DealDash may not be widely recognized or have inflated retail values. Google the product’s actual retail price before bidding and read reviews on other sites.
• Shop elsewhere. If you want to get an item at a good cost (versus having an “entertaining” shopping experience), consider shopping elsewhere.