There is always an atmosphere of excitement at an auction, especially if one is intent on buying some of the lots and many of the things that are going on in the background go unnoticed by the amateur. There is, for example, the operation of a ‘ring’ within the auction. This practice is much more prevalent in Europe than it is in South Africa in spite of the fact that it is forbidden there by Act of Parliament.

It is a method of restricting competition and does not affect the buying potential of the public, but it usually results in loss for both the auctioneer and the vendor. The system works in the following manner. A group of people who are interested in the same things (the more expensive items) get together. One of their number is selected to bid, while the others refrain, therefore the competition is much reduced and the items are purchased at a reduced price. After the sale they distribute the goods amongst themselves. It is interesting to note that the difference between the ‘ring’ price and the genuine auction price is paid into a pool by the members and is then equally divided among themselves. Therefore a member of the group who does not buy anything will still show a profit at the end of the day. This practice has been outlawed in Britain and is now considered a criminal offence. The Act of Parliament which forbids this behaviour is worded as follows: ‘If any dealer agreed to give, or gives or allows any gift or consideration to any other person as an inducement or reward for abstaining or for having abstained, from bidding at a sale by auction, generally or for any particular lot, or if any person agrees to accept or accepts, or attempts to obtain from any dealer any such gift or donsideration as aforesaid, he shall be guilty under this act and shall be liable under summary conviction to a fine not exceeding one hundred pounds, or a term of imprisonment for any period not exceeding six months, or to both such fine and imprisonment.’

Antique Collection

The ordinary public at a sale are usually unaware that a ‘ring’ is operating and remains unaffected by it, but the auctioneer and the vendor are seriously affected. The vendor is sometimes paid much less than his item is worth and this is reflected in a much lower commission received by the auctioneer.

All auctioneers have their Conditions of Sale printed in their catalogues and on carefully examining these they seem to leave the buyer no recourse in law if he buys an item which was falsely described. It seems that there are no recorded cases in the courts where an aggrieved buyer has challenged this or has raised an action to have his money refunded because of misrepresentation at auction. The London and Provincial Antique Dealers Association reported a case in their monthly circular of a successful action against an Auction Room in London by a dealer. It must of course be borne in mind he did have the protection of ‘The Trades Description Act‘ (something which is long overdue in South African Legislation).

On the basis of a catalogue description that included the wording ‘A VERY RARE POLISH ENAMELLED HUMPEN BOWL … with the inscription Stanislaus Lesczynsky, King of Poland 1705 …’, he deposited a bid. His decision to do so was confirmed by a further description by a member of the auctioneer’s staff, during a telephone conversation, that the item was ‘… indeed 18th century and very rare’. His bid was successful, but on receipt of the bowl it was immediately obvious that it was in fact a much later copy, and certainly not ‘very rare’. This view was later confirmed by the Victoria & Albert Museum.

The auctioneer’s reaction on receiving the dealer’s protest was to seek refuge in his Conditions of Sale and to refuse to make a refund. He wrote to the auctioneer and argued that he had been misled by the description of the article, and that in the circumstances a full refund should be made in return for the bowl. He received an acknowledgement, followed by a long letter from the auctioneer’s solicitors which concluded that their client had no liability and would not, therefore, take any further action in the matter.

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AT THE AUCTION