So when is an auction an auction? When you buy the ability to make an offer rather than make a genuine cash offer to buy an actual item? Not in my view. 

I tend to compare these sites to the late night quiz shows on TV that make it appear easy for callers to win large cash prizes. The reality is that only a tiny fraction of the many callers actually ever get the chance to win the prize on offer and, again, the organisers earn a great deal more in premium rate phone call earnings than the prize they eventually give away.

So, while I can see the argument that says this is fair play for those entrepreneurs that have managed to provide these entertainment sites I am concerned that many vulnerable people may be under the impression they can win a lot more than they will. The maths says these sites have to ensure bidding revenue exceeds prize values in order to survive. That means an awful lot of bids need to be sold. And when the ability to make a "penny bid" can cost you over £1 to buy then alarm bells ring in my head. 

Should they be using the term auction? Should they be claiming these games are skillful? I've several concerns. They are more akin to bingo in my view.

So when is a penny auction really a penny auction? Well I would suggest the auctions we've been promoting lately are penny auctions. We've encouraged sellers on traditional auction sites - the ones that operate like eBay, eBid and MilBid - to list items starting with just a penny starting bid. There is no need for anyone other than the eventual winner of these auctions to pay anything at all and then the winner only pays the winning bid amount in exchange for the item on offer. To see the current penny auctions we're promoting take a look at this Squidoo lens. We also have a dedicated forum thread to discuss these penny opening bid auctions.

It's perhaps a shame that the sellers willing to offer real tangible goods in proper auctions starting at just a penny are becoming embroiled in this critical media coverage of the alternative "game" masquerading as auctions. Personally I will not allow my wallet to be milked and risk the chance that some unscrupulous webmasters will be deliberately stringing out these bidding games to maximise the revenue they receive. Show me a real item and I will make a bid. If I win great, if I lose I have no costs to cover. Has the penny dropped?

Read the BBC Penny Auctions report at BBC.co.uk.

For more news and blogs about penny auctions visit Onine Auctioneer.