I didn’t understand the concept at first, but Jeff Attwood is right (link below)! Although I don’t usually agree with him, this is not an opinion it is a fact. Penny Auctions are not auctions, they are simply Gambling. Why?How do they work, you spend a certain amount, say 1$ to bid on an item, the last person to press bid wins! So if you are the last person to hit bid you win even though you only spent 1$ and everyone else who bid before you lost all their money!
I find it outrageous that it is called an auction, it is very misleading! Penny Auctioning is Gambling! And thus is Evil!