The central duty is the prohibition on acting as an auctioneer without a licence (s 6(4)). A natural person must hold a licence; a firm or corporation must have at least one member, officer or employee who holds a licence granted for its benefit. Violation carries a fine of $50,000 (s 6(6)).
Licensees have the duty to carry on business in the name and place specified in the licence, only for the authorised class or classes of business, and subject to any conditions (s 6(3)). They must not wilfully and falsely represent that they have property for sale by auction (s 6(5)).
Advertising restrictions apply: only a licence holder or firm/corporation for whose benefit a licence is held may display signs or publish advertisements indicating they are authorised to conduct auctions (s 23). An occasional licensee is not regarded as a licensee for advertising purposes except for matters relating to that licence (s 23(2)).
Misrepresentation in the course of auctioneering is an offence: making or publishing any false or misleading representation about a lot, as to value, composition, structure, description, character, quality, date, manufacture, origin or otherwise (s 24(1)). There is a defence if the accused proves they believed on reasonable grounds the representation was not false or misleading (s 24(2)).
Record-keeping: every licensee (or the firm/corporation) must record amounts received for or on behalf of any person in a record of accounts, kept separately from the licensee’s own money (s 26(1)). The records must show full and accurate particulars of each transaction and withdrawals, be balanced monthly, and retained for three years (s 26(2)). Penalty: $25,000 per offence.
Account to vendor: within 42 days of completion of sale, or 14 days of a written demand (whichever is earlier), a correct account in writing of the sale and all moneys received and applied must be rendered to the person on whose behalf the lot was sold (s 27(1)). A demand cannot be made for transactions more than six months old, nor particularised for sales more than three years old, nor demanded from both the licensee and the firm if one has already complied (s 27(2)).
Inspection: all records must be open to inspection by a person authorised in writing by the Minister (s 28(1)). The authorised person may demand production of records, furnish bank authorities, and answer questions; refusal or obstruction is an offence (s 28(5)). The Minister may appoint an auditor at the licensee’s expense (s 28(6)). Inspectors have a right to take notes and copies (s 28(4)). A person is not required to answer incriminating questions (s 28(7)).
Bidding by seller or auctioneer: the right to bid must be notified in the conditions of sale; otherwise the seller or auctioneer (or their agent) who makes a bid commits an offence, as does the auctioneer who knowingly takes such a bid (s 29). This preserves the traditional auction practice of reserve bidding if disclosed.
Special duties apply to livestock sales. A register in prescribed form must be kept with particulars of all stock sold, verified by the licensee, on the same day as sale, and retained for three years; invoices and account sales for 12 months (s 30(2)). Firearms and stock inspections are permitted (s 30(3)). A licensee, employee or clerk must not purchase stock placed for sale unless the vendor has consented in writing (s 30(5)); penalty $50,000 or 12 months imprisonment, and the court may order profits to be paid to the vendor (s 30(6)).
Splitting lots of livestock or farm produce is prohibited: inducing another to abstain from bidding by promising a right to take over at the auction price or agreeing to decide ownership by toss or lot is an offence (s 31(1)). Similarly, abstaining as a result of such a promise is an offence (s 31(2)). Auctioneers must notify bidders of these provisions by reading aloud or exhibiting notices (s 31(7)).