MSR TECH - Serving Technology

Well .... I happened to find this "Entertainment Shopping" Bidding site called SWOOPO ( www.swoopo.com ) and initially i thought it  is something like eBay  and got registered to the same. But it did not take much time for me to realize that SWOOPO runs on different concept of Bidding. I did little research and read how it works and to my surprise it is something we need to handle with extra care. Concept sounds simple but weird "BIDDER PAY TO BID" - Is it confusing ? It is really that confusing ... every item in SWOOPO website is time limited and there are NO reserve prices so catch is users / bidders need to pay $1 for each and every bid which means whether you win or lose you have to pay for the bids. They claim that total price you pay for product inclusive of Bid amount is way less than that of its original market price and of course it all depends on how many have bid for  the product . So suggesting that it is either clever, even legal, money-making schem...