ON this auction site, a user bought a car for just 23cents.

Local auction website Tatarah.com.sg touted its "lowest unique bid" auction model as its main selling point.

It meant that whoever bid the lowest price not entered by any other user would win the item, instead of the highest bidder.

The catch was that you had to pay a fee to bid.

So, was this a clever way of getting around online gambling laws?

The company has switched to the conventional model, where the highest bidder wins.

But netizens are still discussing its original business model.

Wrote one blogger, Postmeme: "It's kind of like gambling, really. Lots of people paying for one person to strike it lucky with a unique bid.

"Isn't it just like Toto?"

Another blogger, Knight, wrote: "When people ask me how this site works, I say it's just like buying Toto - it depends on your luck."

Lawyers The New Paper spoke to said it is difficult to say whether the site was flouting gaming laws because the site's business model was so novel.

Said one lawyer, who spoke on condition of anonymity: "There's no analogous case to use as a reference, so its difficult to say whether they are doing anything illegal."

Agreeing, another lawyer said there are different ways of looking at the auction model.

He said: "It does seem like a form of gambling, but that's also how charity raffles operate - you pay for a lottery ticket, for the chance to win a prize."

Under that auction model, users had to pay a processing fee ranging from $1 to $35 to bid on items, which included luxury bags, cars and video game consoles.

HIGH-PROFILE BEGINNINGS

Before its official launch last month, the company rolled out an aggressive $600,000 advertising campaign.

And response was so good that just four days after the site was launched, it crashed because it couldn't handle the flood of visitors.

The site remained down for 11days.

A message posted on the site on 30Oct said the site had to undergo an "urgent bandwidth upgrade" and users would be notified when it was functional.

Then, users were again taken by surprise when the company announced a revamp of its auction model.

In an e-mail sent to members on 8Nov, it said it had decided to implement the change after "feedback and due consideration".

When it re-opened for business on Monday, it used a "highest single bid" model, just like other auction platforms such as eBay.

UPROAR

The site's sudden revamp has upset website users who had paid to bid in auctions that had not closed before the site crashed.

A Tatarah spokesman told TheNew Paper that processing fees for auctions that had not been closed will be fully refunded.

"The refunding process has begun. Cheques are being mailed to the addresses provided by members at the time of registration," he said.

But one user, Mr Damien Yee, 30, said he was disappointed with how the company handled the matter.

He said he had not been informed of a refund.

He did, however, get an e-mail saying his account would be credited with 100 T-points, which can be used to pay for items if your bid is successful.

T-points, worth $1 each, are given to members when they register, refer friends or pay processing fees.

Mr Yee said he had paid about $50 in processing fees to bid on various items, including a luxury handbag, LCD television set and a car.

These items are supplied by Tatarah's partners, including Harvey Norman, Aramsa Spas and Suzuki.

There had also been an outcry when the site closed, from bloggers and forum members disappointed that they could not bid on certain items.

Wrote one blogger, Claudia, who had planned to bid on a Louis Vuitton bag and Nintendo Wii: "How do they expect bidders to bid when the site is down?"

Another blogger, Jussaemon, wrote: "What will happen to the auction lists and the bids we've already placed? Will it be reset?"

On the revamp, the company's spokesman said: "With the highest-single-bid model, members are still be able to purchase their dream items at a fraction of the retail price.

"We have moved to the highest single bid model, which is fully transparent. Each time a new bid is received, it will be displayed on the site."

SOME PRAISE

Some users welcome the site's change of auction model.

Said one 27-year-old member, who wanted to be known only as Daniel: "The highest single bid model is more transparent.

"Under the old model, you tend to wonder about the integrity of the auction, because you don't know who bid what amount."

But others are disappointed.

Said Mr Yee: "I started using the website because of its unique auction system. I told all my friends about it.

"Now that it's switching to the highest single bid model, I doubt I will continue using it."

But the site's management remains optimistic.

Said the Tatarah spokesman: "We may have incurred some losses due to the site's downtime, but we are confident the new model will work well."

I started using the website because of its unique auction system... Now that it's switching to the highest single bid model, I doubt I will continue using it.