The North Carolina Attorney General's office firmly denied claims it declared Zeek Rewards legal, pushing back against a recent Channel 2 WMFY News report. The agency stated it never certified the company's multi-level marketing (MLM) or auction programs as lawful.
The dispute began with a television segment by reporter Liz Crawford. Her piece explained how penny auctions operate, using local company Zeekler as an example. Crawford contacted the NC Attorney General's office during her research. The office acknowledged receiving complaints about both Zeekler and its sister site, Zeek Rewards.
Crawford then stated in the broadcast, "I did get in touch with the North Carolina Attorney General's Office, just to do some fact checking. They told me they have received a handful of complaints when it comes to Zeekler, as well as their sister site Zeek Rewards - however Frank, it is legal."
The reporter's use of "it" created ambiguity. Her segment focused on penny auctions generally, which can operate legally in the United States. Zeek Rewards, however, involves an MLM structure that raises separate legal questions. The AG's office clarifies that "it is legal" referred to the concept of penny auctions, not Zeek Rewards' specific business model.
Patrick Petty of PP Blog contacted the Attorney General's office for clarification. The agency responded that it "never said the Zeek MLM or auctions programs were legal."
The Attorney General's office also asked the television station to air a corrected report. The agency confirmed it receives complaints about both Zeekler and Zeek Rewards. However, it has not made any determination on their legality. No court has ruled on whether the operation is legal or illegal.