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Editors Note: As if auction house games were not complicated enough, a new asterisk (*) on certain sales results.

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On September 9 2016 a letter from the New York City Department of Consumer Affairs confirmed that New York City auction houses must reveal irrevocable bids in post-sale reporting.

“The New York City Department of Consumer Affairs (DCA) writes...regarding whether the sale price disclosed by an auctioneer pursuant to Section 2 125(a) of Title 6 of the Rules of the City of New York (the Rules) must account for any payment(s) made by the auctioneer in connection with an irrevocable bid placed on an auctioned item. As explained below, if the individual who placed the irrevocable bid with the auctioneer wins the auction and is also entitled to a fixed fee or other compensation from the auctioneer as consideration for placing such bid, the lot selling price must be reported net any compensation paid to the irrevocable bidder.

“DCA’s laws and rules governing auctioneers are intended to establish a fair and transparent auction environment for auctioneers, auction participants, and the general public, thereby bolstering and protecting the integrity of the auction process. To this end, DCA regulates, among other things, the terms of the contracts that an auctioneer must provide to a consignor; reserve pricing; the conduct permitted at an auction; and the records that a licensed auctioneer must maintain. As pertinent here, Section 2 125(a) of the Rules requires that an auctioneer keep ‘a written record of all details of each sale, including...description and selling price of each lot.’

To read more:

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