The reality is that because of the way the bidding works there is no need for the companies behind penny-bid sites to scam you. They make more than enough to cover the initial cost of the products from the bids on each auction. The main problem is that people don't understand how the auctions work. They are not regular auctions - you have to buy credits in advance and you win by being the last person to bid on the item once the timer runs out. This is actually very hard to do and requires patience and a method. If you are lucky enough to win then the cost is the amount the auction ends at + plus the credits you spent on bids to win the auction + postage. They tell you all this on the websites usually.