BidRivals.com, a trusted penny auction, is asking users who are owed items to verify their accounts. Less than an hour ago PennyAuctionWatch posted an article questioning this action, asking {xtypo_quote}The question we’d like to ask… Why is this sensitive information being requested and is it necessary? Why isn’t BidRivals (or any other penny auction) using a 3rd party verification service to protect themselves against allegations.[sic]{/xtypo_quote}

As if this action, for such a large and long-standing penny auction, is a bad thing... Firstly, I'd rather the penny auction ensure that people are honoring their terms and conditions. If PennyAuctionWatch were more inquisitive than lazy, she would have her questions answered by reading those terms and conditions:
http://www.bidrivals.com/us/terms.html

{xtypo_quote}2. Eligibility; Disqualification
BidRivals reserves the right to limit the number of users per household and the number of products that each user may purchase. No user may create or have more than one account and only one account is allowed for each street address.{/xtypo_quote}

{xtypo_quote}3. Registering and Accounts
Each user may only register one account. All registrations are subject to BidRivals acceptance. Each user may register only once using his or her street address, and the use of a P.O. Box address or any similar arrangement is not permitted. The user represents and affirms that all registration information provided is true and correct, and complete in all respect.

...Each account may only be used by the person in whose name it is registered, and no account may be shared with, accessed by or transferred to, any other person.

...BidRivals reserves the right at any time to, cancel and terminate the account and void the purchases of any user who BidRivals shall have determine, in its sole discretion, to have violated any of these terms. In addition, BidRivals may also withhold any deliveries of products and/or any refunds that may otherwise be due to any such user, and such user hereby agrees to indemnify and hold BidRivals, its officers, directors, employees, agents and licensors, harmless for any and all damages and losses (including all costs and legal fees) suffered, and which damages and losses either directly or indirectly are caused by or as a result of any such actions by the user. {/xtypo_quote}

Here is where they disclaim the act of verification:

{xtypo_quote}16.    Security Checks
You authorize us to conduct a security review at any time to, amongst other things, validate your identity, age, place of residence and other registration data provided by you, check the manner in which you are bidding or participating in the auctions and verify your financial transactions to prevent money laundering, potential breach of these terms and conditions and/or any applicable law.

You authorize us to make inquiries of you and you agree to provide such information or documentation as we may reasonably request in order for us to undertake a security review.

You authorize us to use the information or documentation you provide to us and disclose it to any third party we consider necessary in order to check, verify or validate it.

In the event such proof is not provided or in case BidRivals is not satisfied with the documentation provided, BidRivals has the right to suspend or permanently remove such unverified user accounts and cancel any auctions won by such users. Such user of unverified accounts will forfeit the right to receive any won items or to be refunded for any payments made, bids placed and bids remaining in the account.{/xtypo_quote}

It's in their terms and conditions, and for reasons outlined therein, they will exercise the right they defined in those terms and conditions.

Why Is Customer Verification A Good Thing?

In short, its just better for business. Ever win the lottery, a contest, bingo, or at a casino? If you won big, you'll remember that pesky IRS form you are required to fill out prior to seeing the money. If cheating, or colluding bidders win a lot, it may certainly have a negative effect on the site/business. If you enjoy bidding on trusted sites, then you should be happy they are verifying you, and others.

What about the private information? What private information? You already gave this site your address, name, phone number and email address. They just want to see a utility bill, and any government issued ID to prove you live there, and are complying with their terms & conditions.

In the PennyAuctionWatch forum, PennyAuctionWatch responded to someone who said they were not comfortable giving that information to a penny auction site, saying {xtypo_quote}Me neither, they should use vericheck or other.{/xtypo_quote}

The irony, it burns... Didn't PennyAuctionWatch have the BidRivals affiliate banner on the front page for months? I've never signed up to be an affiliate with a penny auction site, but knew they probably need your social security number or EIN to comply with tax laws. (Those pesky tax collectors!). Today we went through that process and sure enough, they require your social or EIN number. No exceptions. If PennyAuctionWatch trusted BidRivals with her social or her EIN number, along with her real name, real address, real phone number and real email address, then why the article questioning this practice? A practice which is clearly outlined in their terms and conditions, which are agreed to when you register and bid.

Regarding VeriCheck, VeriCheck doesn't verify, nor reconcile a person's name & address between a database on a penny auction site, and a government agency or any other such database... They verify checks. Here is a list of their services (Which I have used, and was a customer of theirs at one point) http://vericheck.com/index-2.html. Just like a lottery, contest, or at a casino, this is all information you must provide each time you win an amount which triggers that condition. Why pay for something that can be easily done internally?

Finally, this blog was created in an effort to stave off this useless negative crap that is filling the Google search results pages for penny auction terms. The connotation of the PennyAuctionWatch article was negative, and if she was really inquisitive about the nature of BidRivals' verification, a simple visit to their terms and conditions would have quelled that thirst for knowledge.