I think this is a fair analysis on whether penny auctions are a scam. The blog owner also includes some legal views that penny auctions are not a Scam and absolutely not a Bargain.
These Auctions make lots of money applying gambling psychology and marketing.

Have you received any customer complaints that they didn’t know you were going to charge them $159 and asking for their money back?

After your last comment, you did have a great and properly placed disclaimer regarding charges right under the button. Why did it get removed? And why the name change from Swipebids to Swipeauctions?

For your info, here is the FTC info on required disclosure:
http://www.ftc.gov/bcp/edu/pubs/business/ecommerce/bus41.pdf

And here is the section that in my opinion pertains to your registration page:

B. The Clear and Conspicuous Requirement
Disclosures that are required to prevent deception or to provide consumers material information about a transaction must be presented clearly and conspicuously. Whether a disclosure meets this standard is measured by its performance that is, how consumers actually perceive and understand the disclosure within the context of the entire ad. The key is the overall net impression of the ad that is, whether the claims consumers take from the ad are truthful and substantiated.
In reviewing their online ads, advertisers should adopt the perspective of a reasonable consumer. They also should assume that consumers don’t read an entire Web site, just as they don’t read every word on a printed page. PI In addition, it is important for advertisers to draw attention to the disclosure. Making the disclosure available some- where in the ad so that consumers who are looking for the information might find it doesn’t meet the clear and conspicuous standard.
Even though consumers have control over what and how much information they view on Web sites, they may not be looking for or expecting to find disclosures. Advertisers are responsible for ensuring that their messages are truthful and not deceptive. Accordingly, disclosures must be communicated effectively so that consumers are likely to notice and understand them.

I am sorry but to help with any concerns I will need you to contact me personally at jennifer@swipeauctions.com as our emails are monitored and filed if needed for reference at a later date. As well please visit the link below as it is the new screen shot of our final registration page, at the bottom our membership fee is noted in 4 locations right next to where you input your information.
http://dl.dropbox.com/u/1647255/chcekout.jpg

I look forward to hearing from you.
Regards,

Jennifer
Head of Customer Service
Our Winners: http://www.swipeauctions.com/all_past_winning_auction.php
Our World Vision Charity: http://www.swipeauctions.com/world_vision_charity.php
Our Customer Service Page: http://www.swipeauctions.com/contact.php

Also, what’s your last name?

My name is Jennifer, Head of Customer Service for Swipebids. I assure you our website is not a scam and is entirely legit, please visit the information below for confirmation.

The registration page where your credit card information is inputted into our system, has 4 locations where we notify customers of our $159 Membership fee. Provided in the link below, you will see 1 right above where your information is inputted, 2 are off to the left and the last is right above the “Start Bidding” button, which will finalize your registration.
https://www.swipebids.com/registration_pg2.php

We show on our website quite a few pages of past winners, included we show the price it was sold at, retail price and you can even confirm the tracking numbers by clicking on the number itself. We have also given away numerous cars to bidders within the United States and Australia which can be verified at the link below
http://www.swipebids.com/all_past_winning_auction.php

We also sponsor numerous children through World Vision, the link below will take you to the site where we describe how it all works and how we started by sponsoring 100 children and we continue to add 1 more each day in our effort to make a positive change.
http://www.swipebids.com/world_vision_charity.php

If you have any other questions or concerns please do not hesitate to contact me personally at jennifer@swipebids.com

Regards,

Jennifer
Head of Customer Service

Our Winners: http://www.swipebids.com/all_past_winning_auction.php
Our World Vision Charity: http://www.swipebids.com/world_vision_charity.php
Our Customer Service Page: http://www.swipebids.com/contact.php