This weekend the online conversation surrounding Zeek Rewards took off in a big way, when international affiliates found their accounts suspended. Sadly, some of the conversation (mind included) has been based on subjective conclusions, and not fully based on the facts.
What we do know for sure is Zeek Rewards CEO Paul Burks found it necessary to shut down an undetermined amount of international affiliates some several different countries.
What we do know for sure, is that over the last few months, Zeek Rewards has been very clear, they have faced international fraud exposure in several cases and at one point made the decision to shut off credit cards for Zeek Reward affiliates, while continuing to accept them at the Zeekler penny auction site.
What we are not for sure about is if this development over the weekend, has anything to do with the international credit card fraud that has been causing issues in the past.
With that said, the FTC issued a Consumer Alert back in August of 2011 which does bring to light some of the issues I have mentioned over the weekend and some none of us may have known about.
However, what is most interesting is the fact is it has not been until now that some people have decided to use this FTC Consumer Alert to try and raise the questions about Zeek Rewards being some form of scam! Instead I believe this Alert helps explain more about what faces both the penny auction companies and those who take part in them.
Something else that stands out, is the fact, the FTC has been aggressive in shutting down illegal penny auctions for over a year. Common sense would tell us that with the massive growth this company has had, they have caught the eyes of the FTC and to date have not had any issues.
In my opinion, based on the amount of money Zeek Rewards have invested in compliance and legal teams over the last 90-days it is clear they are going above and beyond what other companies in the same niche seem to be doing.
After reading this FTC Consumer Alert, I stand by my concerns on any U.S. based individual or corporation being involved with any offshore company, that has not established a legal entity in the USA to transact business in the penny auction niche.