Auctions as lottery-like Events

Comlot warns you to be wary of participating in any of the numerous illegal lottery-like events that have become a frequent feature of the Internet in the recent past. What these new kinds of auction platforms all have in common is the price of "auctioned" products, which at first sight is significantly lower than the average market price. Participants must buy so-called "credits" in order to bid. Each bid costs a "credit", which means the bidder pays regardless of whether or not they will ultimately obtain the product. Each bid extends the deadline by which bidding stops, while product price increases by infinitesimal fractions in comparison to the cost of the "credits". The initial low price and slow increment animates bidders who often end up paying an excessive total price.

Comlot has also found that certain on-line auctions were manipulated by so-called "bots" that put in a bid when actual live bidders have stopped bidding, thereby extending bidding time indefinitely.

This kind of auction is in every respect akin to a lottery-like event according to art. 43, item 2, of the Swiss Lottery Ordinance (LV), and is therefore illegal in Switzerland.

Comlot will report to the prosecutor anyone who organises illegal auctions in Switzerland.

Cantonal prosecutors investigate and adjudicate any violations according to art. 47 of the Swiss Lottery Act (LG). While Comlot does not have the power to prosecute, it will report to the prosecutor any violations of Swiss law.