Stock control
It would have been very difficult to exactly report numbers on this deal. I queued outside O2 in Oxford for my contract iPhone 4. The manager had staff constantly counting the queue, asking if you were buying the 16 or 32 version, then checking against stock he had left. Very difficult to exactly control the point at which you have no more stock.
I didn't try to buy from this site but it's like a lottery ticket, you buy one with very little chance of wining but nobody is aying we should not sell lottery tickets. No-one can tell me anyone trying to buy an iPhone at £99 would not have known it would me a massive gamble.
If you went to Trading Standards and reported you tried to buy an iPhone for £99 and failed they would laugh you out the door.