Anybody can claim to be running a contest to name anything, legality not withstanding, however, only the body/organization that is internationally recognized as the valid naming registrar can actually place or change names. In this case, it's the IAU (International Astronomical Union).
Uwing claims they didn't say they were sanctioned to do so by IAU, but then again, they didn't say they weren't, and most people will assume that you had obtained permission to do something you are taking money for unless you say otherwise. To not point out that it is an unofficial name choosing, is the first sign of a scam.
Another thing, if you see anyone wanting money for ANYTHING not within the confines of the Earths Troposphere, it's about 99.999% probably it's a scam. You won't get any property, rights, or official naming of anything. There are international treaties that cover a lot of this stuff, and one of the first rules in that whole thing is if you don't have people their, you definitely have no rights to sell it, period. (Even if you do have people there, you still have lots of limits on what you can do.)
By the way, horrible name choice in my opinion. Nice to honor your grandfather, but still, that name sucks.
Source: http://rss.slashdot.org/~r/Slashdot/slashdotScience/~3/jJwP4NEYLF0/story01.htm
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