Consumer Protection Act
Pertinent to auctions
Schedule 18 through to 30

GOVERNMENT GAZETTE, 1 APRIL 2011 No. 34180 3
GOVERNMENT NOTICE
DEPARTMENT OF TRADE AND INDUSTRY No. R. 293 1 April 2011
THE CONSUMER PROTECTION ACT, 2008 (ACT NO. 68 OF 2008) REGULATIONS

I, Dr Rob Davies, Minister of the Department of Trade and Industry, in terms
of and under section 120 (1) of the Consumer Protection Act, 2008 (Act 68 of
2008), read together with the respective sections indicated in the regulations
below, do hereby make the regulations set out in the schedule hereto and
issue the attached notices in terms of the respective sections indicated in
such notices.

DR ROB DAVIES, MP
MINISTER OF TRADE AND INDUSTRY DATED: 1 April 2011

GOVERNMENT NOTICE
DEPARTMENT OF TRADE AND INDUSTRY

Consumer Protection Act Regulations

I, Dr Rob Davies, Minister of Trade and Industry, in terms of and under section 120 (1) of the Consumer Protection Act, 2008 (Act No. 68 of 2008), read together with the respective sections indicated in the regulations below, do hereby make the regulations set out in the schedule hereto.

SCHEDULE

Table of contents

1. Short title and definitions
2. Franchise agreements
3. Disclosure document for prospective franchisee
4. Mechanisms to block direct marketing communication
5. Maximum duration for fixed-term consumer agreements
6. Product labelling and trade descriptions: textiles, clothing, shoes and leather goods
7. Product labelling and trade descriptions: genetically modified organisms
8. Disclosure of reconditioned or grey market goods
9. Information to be disclosed by intermediary
10. Records to be kept by intermediary
11. Promotional competitions
12. Cautionary statement for alternative work schemes
13. Interpretation: Fraudulent Schemes and Offers
14. Prohibition on intermediary arranging transport contracts
15. Public property syndication schemes
16. Prohibition on feasibility studies promising funding
17. Calculation of interest for multiplication scheme
18. Definitions, interpretation and application: auctions
19. Mandatory advertising of auctions
20. General rules on advertising of auctions
21. Rules of auction
22. Auctioneer and auction house to hold and account for consumer’s property
23. Disqualification to conduct auction
24. Prohibited behaviour
25. False entry in auction record
26. Bidder’s record
27. Ownership
28. Bidding
29. Mock auction
30. Internet or electronic auctions
31. Records
32. Motor vehicle auctions
33. Livestock, game and closed auctions
34. Maximum amount of cancellation penalty for lay-by’s
35. Initiating complaint to Commission
36. Investigation by Commission
37. Outcome of investigation
38. Standards, procedures and related matters for Commission to follow in assessing
applicant for accreditation as consumer protection group
39. Form, manner and fee to register business names
40. Notice to cancel registration
41. Official languages to be used by Commission in documents
42. Compliance notice
43. Confidentiality Claim
44. Notice from the Chairperson: Civil actions
45. List of contract terms which are presumed not to be fair and reasonable

Definitions, interpretation and application: auctions

18 (1) In regulations 19 to 30, unless the context indicates otherwise, any word or
expression to which a meaning has been assigned in the Act has the same
meaning, and
“auction house” means a company or other juristic person which from time to time
conducts auctions as part of its business;
“auction without reserve” means an auction at which
(a) goods are sold to the highest bidder without reserve;
(b) the auction does not require a minimum bid;
(c) the auction does not allow competing bids of any type by the seller or an agent
of the seller; and
(d) the seller of the goods cannot withdraw the goods from auction after the
auction is opened and there is public solicitation or calling for bids;
“auctioneer” means the person conducting an auction, irrespective of whether he or
she is doing so for his or her own account or as employee of or agent for an auction
house or another person;
“bidders’ record” means the document contemplated in regulation 26;
“closed auction” means an auction where the auctioneer or the owner, as the case
may be, issues an invitation to take part in an auction only to a finite list of
consumers;
“game” means game as defined in section 1 of the Game Theft Act, 1991 (Act No.
105 of 1991;
“goods” includes, where appropriate, services;
“livestock” means cattle, sheep, goats, pigs, horses, mules and donkeys;
“lot’ means any group of goods sold or offered for sale as a unit and identified as
such;
“vendor’s roll” means the document contemplated in regulation 28{4); and
“URL” means an operational uniform resource locator, providing access to
information on the internet.
{2) Regulations 19 to 30 must be read together with section 45{6) of the Act.
{3) Subject to sub-regulation {4), these regulations apply to all auctions, irrespective of
the nature of the goods offered on auction, the value of the property or the reason
for conducting the auction.
{4) These regulations do not apply to
{a) transactions concluded under the auspices of a registered or licensed stock
exchange or similar institution; or
{b) an auction where the goods for sale have been donated for sale at an auction
and the proceeds of the auction are paid to a bona fide religious, educational,
cultural, welfare, social or sports organisation or body which does not as its
primary activity undertakes commercial or business operations,
but an auction conducted as a sale in execution or ordered by a court of law does
not constitute an auction contemplated in paragraph {a).
{5) Any provision in any agreement relating to goods sold or bought at an auction or
advertised or offered for sale at an auction, or any agreement providing for
conducting the auction itself, in conflict with these regulations, does not from the
moment of its conception or conclusion, as the case may be, have any force or
effect, but this sub-regulation must not be interpreted so as to prevent holding a
person liable for any relevant contravention.
{6) These regulations do not detract from any law providing for or related to the
advertising, sale, purchase, delivery, rendering or financing of goods.
{7) An auctioneer selling immovable property by way of auction must comply with any
other applicable law in respect thereof, including legislation regulating the activities
of estate agents.
{8) An auctioneer must comply with all general provisions of these regulations as well
as those applicable to the category of auction or auctioneer provided for in
regulations 32 and 33.

Mandatory advertising of auctions

19 (1} Subject to regulations 33, no goods may under any circumstance whatsoever be
sold by auction unless the inclusion of such a particular item or lot or service in that
auction has been advertised in compliance with these regulations in such a manner
that the general public has had a reasonable opportunity to become aware of the
auction, the goods on offer and of the rules governing the auction.
(2} The onus to prove that an auction was advertised as contemplated in sub-regulation
(1} rests on the auctioneer.
(3} An auctioneer must for purposes of sub-regulation (1} advertise the auction of a
particular item or lot at least 24 hours prior to the commencement of the auction, but
(a} any goods may be withdrawn at any time prior to the commencement of the
auction;
(b) in the event of an auction where goods offered for sale include immovable
property, this period must exceed five business days.
(4} If an auction or part thereof relates to goods sold in execution or by order of court,
the advertisement must clearly state that fact.

General rules on advertising of auctions

20 (1} Despite the rules and rulings of any advertising standards body, all advertising of
auctions must
(a} be accurate; and
(b) provide sufficient information for a reasonable consumer to
(i} understand that it relates to an auction; and
(ii} be able to find the place where the auction is to be held.
(2} Advertising relating to an auction must subject to sub-regulation (3}
(a} be in a legible format and size;
(b) contain a reference to these regulations, together with the URL of an
operational internet site where a copy of these regulations can be obtained;
(c) state the date, place and time of the auction;
(d) state the name of the auctioneer and the auction house, if any, and if
registration or licensing of auctioneers or auction houses after the
commencement of these regulations becomes mandatory, such registration or
licensing number;
(e) state where the rules of auction can be obtained;
(f) state the particulars of the goods offered on auction;
(g) if applicable, state that the auction will be held over a number of days;
(h) state, if applicable as contemplated in section 45(4) of the Act, that a sale by
auction is subject to
(i) a reserved or upset price; or
(ii) a right to bid by or on behalf of the owner or auctioneer, in which case
the owner or auctioneer, or any one person on behalf of the owner or
auctioneer, as the case may be, may bid at the auction; and
(iii) contain a reminder that all prospective bidders must register as such
prior to making bids during the auction and that such registration
requires proof of identity and of residence as contemplated in
regulation 26;
(i) disclose as accurately as possible the total costs of advertising and
conducting the auction.
(3) The requirements of sub-regulation (2) do not apply to roadside advertising or
classified advertising in printed newspapers, but such advertising must
(a) at the top of the advertising prominently display the word “auction”;
(b) indicate where a full advertisement as contemplated in sub-regulation (2) (b)
can be obtained; and
(c) state the date, place and time of the auction.
(4) A consumer may at any time during ordinary business hours request an auctioneer
to provide him or her with access to an advertisement contemplated in sub-regulation
(2), and the auctioneer must forthwith without charging any fee whatsoever comply
with such a request, but
(a) a consumer is entitled to only one free copy;
(b) the auctioneer may provide a URL of an operational website which will provide
a copy of the full advertisement in a format generally used.
(5) Any material or publication not meeting all of the requirements of this regulation
does not constitute advertising for purposes of regulation 19 and this regulation.
(6) An auction may not be advertised as a “sale in execution” or use similar wording
implying court action unless
(a) at least 75 percent of the items or lots in the auction are being offered
pursuant to a court order;
(b) the items or lots were clearly not purchased or attained for the purpose of
resale at auction; and
(c) the advertising contains an explanation of the court order including
identification of the court.
(7} Unless all items or lots being offered at auction are pursuant to a court order, then
the advertising must indicate that the auction is “with additions”, “supplemented” or
use similar wording.
(8} Sub-regulations (6} and (7} do not prohibit clear, non-misleading advertising of the
inclusion of specific goods being offered pursuant to a court order in an auction if
such goods are offered pursuant to a court order and were clearly not purchased or
attained for the purpose of resale at auction.
(9} An auction may not be advertised as an “insolvency auction” or use similar wording
implying insolvency unless
(a) at least 75 percent of the items or lots in the auction are being offered
pursuant to an order of the Master of the High Court;
(b) the items or lots were clearly not purchased or attained for the purpose of
resale at auction; and
(c) the advertising contains the order number of the Master of the High Court.
(10) Unless all items or lots being offered at the auction are pursuant to an order of the
Master of the High Court, then the advertising must indicate that the auction is “with
additions”, “supplemented” or use similar wording.
(11} Sub-regulations (9) and (10} do not prohibit clear, non-misleading advertising of the
inclusion of specific goods being offered pursuant to an order of the Master of the
High Court in an auction if such goods are offered pursuant to an order of the
Master of the High Court and were clearly not purchased or attained for the purpose
of resale at auction.
(12) An auction may not be advertised as “deceased auction” or use similar wording
implying insolvency unless
(a) at least 75 percent of the items or lots in the auction are being offered
pursuant to an order of the Master of the High Court;
(b) the items or lots were clearly not purchased or attained for the purpose of
resale at auction; and
(c) the advertising contains the order number of the Master of the High Court.
(13) Unless all items or lots being offered at the auction are pursuant to an order of the
Master of the High Court, then the advertising must indicate that the auction is “with
additions”, “supplemented” or use similar wording.
(14) Sub-regulations (12} and (13) do not prohibit clear, non-misleading advertising of the
inclusion of specific goods being offered pursuant to an order of the Master of the
High Court in an auction if such goods are offered pursuant to an order of the
Master of the High Court and were clearly not purchased or attained for the purpose
of resale at auction.
(15) An auction shall not be advertised as “divorce auction” or use similar wording
implying court action unless
(a) at least 75 percent of the items or lots in the auction are being offered
pursuant to a court order;
(b) the items or lots were clearly not purchased or attained for the purpose of
resale at auction; and
(c) the advertising contains an explanation of the court order including
identification of the court.
(16) Unless all items or lots being offered at the auction are pursuant to a court order,
then the advertising shall clearly indicate that the auction is “with additions”,
“supplemented” or use similar wording.
(17) Sub-regulations (15) and (16) do not prohibit clear, non-misleading advertising of the
inclusion of specific goods being offered pursuant to a court order in an auction if
such goods are offered pursuant to a court order and were clearly not purchased or
attained for the purpose of resale at auction.
{18) No auction may be advertised as “absolute” or “without reserve”, no advertising may
contain the words “auction without reserve”, “absolute auction” or “without reserve”,
or the word “absolute” or words with similar meaning and no auctioneer may offer or
sell any goods at auction without reserve unless
(a) there are no liens or encumbrances on the goods, except property tax
obligations, easements, or restrictions on record, in favour of any person other
than the seller, or unless each and every holder of each and every lien and
encumbrance has in writing agreed to the unqualified acceptance of the
highest bid for the property, without regard to the amount of the highest bid or
the identity of the high bidder, or that a financially responsible person in writing
absolutely guarantees the immediate and complete discharge and satisfaction
of any and all liens and encumbrances immediately after the sale or at the
closing, without regard to the amount of the highest bid received, or the
identity of the high bidder; and
(b) there is the bona fide intention at the time of the advertising and at the time of
the auction to transfer ownership of the goods, regardless of the amount of the
highest and last bid, to the highest bidder, that intent existing without reliance
on any agreement that any particular bid or bid level must be made or be
reached, below which level the goods will not be transferred to the highest
bidder; and
(c) the rules of auction contain a binding requirement that the auction be
conducted without reserve.
(19) Sub-regulation (18) does not prohibit
(a) a secured party or other lien holder who is not the seller from bidding at an
auction without reserve, but such bidding does not constitute, nor is it
tantamount to the direct or indirect establishment or agreement to the
establishment of a reserve price on the goods by the seller or by the
auctioneer, or by anyone aiding or assisting, or acting upon behalf of, the
seller or the auctioneer;
(b) any individual party to the dissolution of any marriage, partnership, or
corporation from bidding as an individual entity apart from the selling entity, on
goods being sold at auction pursuant to that dissolution;
(c) any individual party or heir of a deceased person’s estate from bidding as an
individual entity, apart from the selling entity, on goods being offered at
auction pursuant to that estate being settled; or
(d) the inclusion of non-misleading advertising of certain goods to be sold at
“auction without reserve” and the non-misleading advertising of certain goods
to be offered at auction with reserve, within the same advertisement, or for
sale at the same date and place, but that advertisement must make clear,
through appropriate emphasis, which goods are being offered by each
method.

Rules of auction

21 (1) An auctioneer must
(a) in writing compile the rules of auction; and
(b) except in the case of a livestock or game auction or a closed auction, make
the document available to the general public at least 24 hours prior to the
commencement of the auction.
(2) The rules of auction must, as a minimum
(a) on the first page of the document in large letters display the words “rules of
auction”, and immediately beneath that the date, place and time of the auction;
(b) contain the full names, physical address and contact details of the auctioneer,
and where applicable, of the auction house;
(c) contain all mandatory information required by these regulations, and if
applicable, the information contemplated in section 45 (4) or (5) of the Act;
(d) contain a statement to the effect that the rules of auction comply with section
45 of the Act and with these regulations;
(e) contain the text of subsection (2) of section 45 of the Act;
(f) provide that an auction will commence at the published time and that it will not
be delayed to enable any specific person or more persons in general to take
part in the auction;
(g) provide that a person who attends at the auction to bid on behalf of another
person must produce a letter of authority meeting the requirements of
regulation 26(3) in order to so bid on behalf of that person;
(h) unless the auctioneer is also the owner or rightful holder (who has the right to
sell) of the goods to be auctioned, contain a statement to the effect that the
auctioneer has a trust account into which all moneys will be paid for the
benefit of the seller, minus the agreed commission;
(i) contain a statement to the effect that the auctioneer will during the auction
announce the reason for the auction unless that reason is the normal and
voluntary disposal of goods by the owner; 0> provide that a person who intends to bid at the auction must register prior to
the commencement as contemplated in regulation 26(2) together with a
description of the requirements for registration;
(k) provide that the bidders’ record contemplated in regulation 26 and the vendor
roll contemplated in regulation 28(4) are available for inspection during normal
hours without the charge of a fee; and
(I) contain a breakdown of the total cost of advertising and conducting an auction
and a statement indicating whether additional costs may be added and if so,
how such additional costs will be computed.
(3} The rules of auction may not
(a) exclude liability in respect of inaccurate information provided in the advertising
of the auction;
(b) exclude liability in respect of the rules of auction not meeting the requirements
of these regulations; or
(c) contain any qualification, reservation or diminution of the requirements of
these regulations unless expressly provided for.
(4) In the event that the rules of auction are amended after their initial publication, the
auctioneer must expressly indicate that the new version is an amended version.
(5) The rules of auction must be signed by the auctioneer who is going to conduct the
auction and he or she must certify that the rules of auction to the best of his or her
knowledge meets the requirements of this regulation 21.
(6) If on the day of the auction the auctioneer who signed the rules of auction as
contemplated in sub-regulation (5) is unavailable to conduct the auction, the
auctioneer who then conducts the auction will be deemed to have so certified the
rules of auction.
(7) An auctioneer is personally accountable and liable for the contents of the rules of
auction applicable to a specific auction.
(8) The rules of auction need not be read out at an auction to be valid, but only if
(a) the rules of auction were, where applicable, available to the general public at
least 24 hours prior to the commencement of the auction;
(b) in the case of a livestock or game auction contemplated in regulation 33 are
the same as for previous auctions and are generally available on the auction
house or the auctioneer’s website or at the auction house or the auctioneer’s
business premises during normal business hours;
(c) in the case of a closed auction, were made available to all persons to whom
an invitation to take part in that auction was issued; or
(d) at an auction other than an internet auction, the auctioneer invites any person
present to object to the rules of auction not being read upon, and nobody
does.
(9} The rules of auction may not exclude the right of inspection as contemplated in
regulation 28(5).

Auctioneer and auction house to hold and account for consumer’s property

22 (1) An auctioneer and auction house must at all times strictly comply with section 65(2)
of the Act.
(2) Unless the auctioneer is also the owner or rightful holder (who has the right to sell)
of the goods to be auctioned, no auctioneer may sell goods on auction until he or
she has first entered into a written agreement with the owner or rightful holder (who
has the right to sell) of such goods to be sold, whether for a specific auction or
auctions on general, which agreement contains the terms and conditions upon
which that auctioneer accepts the goods for sale.
(3} An agreement contemplated in sub-regulation (2) must as a minimum contain
(a) the name and physical address of owner of the goods to be sold or the
owner’s agent or the rightful holder (who has the right to sell) thereof;
(b) if the goods are to be sold at a specific auction, the date of the auction or if the
goods are to be sold at a number of auctions, a termination date of the
agreement;
(c) the address of the premises where the auction is to be held;
(d) the rules of auction;
(e) a description of all of the fees to be charged by the auctioneer or the auction
house, which must include commissions, storage, advertising and labour, or a
method by which such fees will be determined;
(f) an explanation of the settlement of the auction that includes the disbursement
of interest money, if applicable;
(g) a statement indicating whether the auction is an auction without reserve or
not;
(h) a brief description of the goods to be sold;
(i) if the sale is of goods at auction without reserve, a statement affirming that the
seller of the goods has a bona fide intention to transfer ownership of the
property to the highest bidder;
U) an exact copy of section 65(2) of the Act;
(k) an exact copy of subsections (1) to (5) of section 45 of the Act.
(4) An auctioneer must retain a copy of every agreement contemplated in sub-regulation
(2) signed by the owner or rightful holder of the goods to be auctioned for a period of
at least three years from the date of the auction.
(5) In performing the duties of an auctioneer, every auctioneer
(a) is the agent of the owner or rightful holder (who has the right to sell) of the
goods for all aspects of an auction;
(b) must follow all lawful and reasonable requests of the owner or rightful holder
of the goods or immovable property sold at auction;
(c) must perform his or her duties so that the highest or most favourable offer
made by a bidder is accepted; and
(d) must otherwise perform his or her duties in accordance with the highest
standards applicable to auctions.
(6) An auctioneer must keep abreast of current market conditions of goods at all times
in order to be in a position to advise and perform services for his or her clients to the
best of his or her ability.
(7) An auctioneer
(a) owes a duty of care towards his or her client;
(b) must protect and secure the goods whilst under his or her control or in his or
her possession;
(c) must at all times preserve a professional, confidential relationship with his or
her client;
(d) must timeously reveal estimated costs and services for conducting the
auction; and
(e) if he or she is aware or ought reasonably to be aware of any risks associated
with the auction of particular goods, must forthwith disclose such risks to the
client.
(8) All unsold property must be returned to the owner or rightful holder immediately
upon the completion of an auction unless otherwise agreed.
(9} The owner or rightful holder (who has the right to sell) must be provided with an
itemised account of all goods sold immediately upon completion of the auction
unless otherwise agreed, which as a minimum must contain
(a) the item or lot sold,
(b) amount received for the sold item or lot; and
(c) the name of the buyers of every item or lot.

Disqualification to conduct auction

23 A person who
(a) has been found guilty by a court of law, whether in the Republic or elsewhere,
of an offence of which fraud or dishonesty is an element, or of any other
offence for which such person has been sentenced to imprisonment
exceeding five years without the option of a fine;
(b) is of unsound mind; or
(c) is an unrehabilitated insolvent,
may not conduct an auction or in any other way act as an auctioneer or hold him or
herself out as an auctioneer.

Prohibited behaviour

24 An auctioneer may not
(a) charge or receive any fee or commission in respect of the sale of movable
goods unless such goods have been delivered to the purchaser;
(b) charge or receive any fee or commission in respect of the sale of immovable
property until the purchaser and the seller have signed a written agreement in
respect of the sale of such immovable property;
(c) charge or receive any fee or commission from the purchaser if the seller
defaults or where such fee or commission has already been paid by the
purchaser to the auctioneer, the auctioneer shall immediately refund the
purchaser the amount paid, including deposit;
(d) charge or receive any fee or commission from the purchaser, if the purchaser
defaults, exceeding ten percent of the purchase price or the total cost of
advertising and conducting an auction and such additional costs as may have
been reasonably incurred in accordance with regulation 21 (2)(1), whichever is
the lesser;
(e) charge or receive any fee or commission from the seller, unless agreed
otherwise in writing, if the buyer defaults or where such fee or commission has
already been paid by the seller to the auctioneer, the auctioneer shall
immediately refund the seller the amount paid;
(f) charge or receive any fee or commission from the seller if the seller defaults,
unless agreed otherwise, exceeding ten percent of the purchase price or the
total cost of advertising and conducting an auction and such additional costs
as may have been reasonably incurred in accordance with regulation 21 (2)(1),
whichever is the lesser;
(g) enter into any agreement or arrangement with the seller to sell any goods
unless the auctioneer has first provided the seller with an estimate of the total
cost of the auction;
(h) accept a bid from a person unless he or she is registered in the Bidders’
Record as contemplated in regulation 26;
(i) set a minimum or reserve price without the express written permission of the
seller;
U) remove an item or lot from an auction without the express written permission
of the seller;
(k) allow bidding on an item or a lot if the auction thereof has not been advertised
as contemplated in regulations 19 and 20;
(I) during an auction deviate from the sequence of goods as advertised;
(m) knowingly misrepresent, or cause or permit to be misrepresented the value,
composition, structure, character or quality or manufacture of the goods put up
for sale at an auction;
(n} hinder the access of any person to any advertisement contemplated in these
regulations, rules of auction or vendor’s roll; or
(o} pay any other person in order to be appointed as auctioneer, whether in
general or for a particular auction or in respect of any specific goods.

False entry in auction record

25 Without detracting from any other applicable law, an auctioneer, including an
employee of the auctioneer or the auction house, may not knowingly enter in any
record kept or required to be kept by the auctioneer under or in terms of these
regulations or any other applicable law, any name or other details other than the real
name and details of the actual successful bidder.

Bidder’s record

26 (1} An auctioneer must for every auction have a bidders’ record to record the identity of
all bidders at an auction.
(2} Subject to regulation 30(2}, the auctioneer must ensure that every prospective
bidder must prior to the commencement of an auction register his or her identity in
the bidder’s record, and such registration must with the necessary changes meet the
requirements of Chapter 1 of the regulations in terms of the Financial Intelligence
Centre Act, 2001, published in Notice No. R.1595 in Gazette No. 24176 of 20
December 2002, in respect of establishment and verification of identity, and sign
that entry.
(3} The auctioneer must ensure that a person who intends to bid on behalf of another,
produces a letter of authority expressly authorising him or her to bid on behalf of that
person, and both that person and the person bidding on his or her behalf must meet
the requirements of sub-regulation (2}
(4} The auctioneer must ensure that if a person will be bidding on behalf of a company,
the letter of authority contemplated in sub-regulation (3} must appear on the
letterhead of the company and must be accompanied by a certified copy of the
resolution authorising him or her to do so.
(5} The bidders’ record is available for public inspection in respect of the names of
bidders and the bidders’ numbers referred to in sub-regulation (6} only, at any time,
free of charge
(a} during an auction, at the premises where the auction is being held; and
(b) before or after an auction, at the auction house or auctioneer’s place of
business and during normal business hours.
(6) An auctioneer must record the bidder number contemplated in regulation 28(1) in
the bidders’ record.

Ownership

27 The auctioneer must ensure that a person who wishes to dispose of his or her
property by way of an auction signs a declaration stating that he or she is the owner
or rightful holder of the goods (who has the right to sell) and submits that declaration
to the auctioneer.

Bidding

28 (1) An auctioneer must provide a prospective bidder whose name appears in the
bidders’ record with a bidder number before he or she may bid, as well as a paddle
or other device to which that number is attached in such a way that it is clearly
visible to the persons present at the auction.
(2) A bid taken from an unregistered person is invalid.
(3) The place where an auction is held must be open and accessible to any member of
the public, subject to the auctioneer’s right to refuse a person the right to remain on
the auction’s premises in the event that that person repeatedly behaves in such a
way so as to disrupt the auction.
(4) An auctioneer must have a vendor’s roll in which all details of the auction are
recorded, which must, as a minimum, include
(a) the advertising of the auction;
(b) the rules of auction;
(c) the bidders’ record;
(d) the declarations contemplated in regulation 21 (2)(h) and 27;
(e) a list of all goods on auction, including goods which were withdrawn from
auction;
(f) the names of the successful bidders, the goods or lots bought and the prices
paid in respect thereof;
(g) the details of any challenges to the validity of the auction or the conduct
thereof, and the particulars of the persons making such challenges, if
available;
{h) any items or lots not sold;
{i) the details of any reserved price or any matter contemplated in subsections
{4) and {5) of section 45 of the Act.
{5) The auctioneer must afford consumers a reasonable period of time and opportunity
to inspect the goods on offer prior to the commencement of an auction, and no fee
may be charged for such opportunity, but an auctioneer may
{a) refuse or restrict access to such goods if the consumer after gaining access in
any way acts unlawful or in contravention of the applicable rules of auction;
{b) require the consumer to adhere to or submit to any security measures
reasonably applicable in the circumstances.
{6) Subject to any reserved price and acceptance of the highest bid by the seller, the
highest bidder, when the auctioneer announces the completion of a sale by the fall
of the hammer, or in any other customary manner, is the purchaser of the goods or
lots on auction.
{7) No fee may be charged for participation in an auction, but this does not apply to
refundable deposits.
{8) The auctioneer must upon concluding the proceedings of an auction
{a) announce that the auction has come to an end;
{b) sign the vendor’s roll; and
{c) certify that the proceedings of the auction were to the best of his or her
knowledge conducted in accordance with these regulations, any other
applicable law and the rules of auction.

Mock auction

29 {1) A mock auction is an auction in which
{a) goods are sold for less than the highest bid, or part of the purchase price is
repaid or credited to the purchaser;
{b) the right to bid for goods is restricted to persons who have bought or have
agreed to buy other goods; or
{c) any goods are given away as gifts.
{2) No person may promote, facilitate, conduct or take part in a mock auction.
{3) If it can be proved that the reduction in the purchase price or the repayment credit
was due to a defect which the auctioneer only became aware of after the highest bid
was made, or because of damage sustained after the highest bid was made, the
auction will not be considered to be a mock auction.
(4) No person may promote, organize, participate in or benefit from any kind of
conspiracy between an auctioneer, any participants in an auction or any other
persons who agree not to bid against each other at an auction or who otherwise
conspire to decrease or increase the number or amounts of bids offered at auction.

Internet or electronic auctions

30 (1) An auction may be conducted via the internet or other electronic medium or
platform, irrespective of where the server or other electronic medium or platform is
situated, only if
(a) it meets all requirements in respect of an auction provided for in these
regulations or other applicable law, but with the necessary changes, if any, to
suit an electronic medium or platform;
(b) the relevant internet website or electronic medium or platform is generally
available to anyone over the age of 18 years at any time of the day;
(c) the relevant internet website or electronic medium or platform provides high
standards of security for electronic transactions;
(d) the relevant internet website or electronic medium or platform provides for
easy access to all records prescribed in these regulations in a generally used
or accepted medium or format;
(e) the internet auction provider keeps the information contemplated in regulation
28(4).
(2) For purposes of regulation 26(2), a prospective bidder in an auction to be held via
the internet or other electronic medium or platform must register by providing
(a) his or her full names, identification or passport number, age, physical
address, internet protocol address, and where applicable, login code or name,
and password; and
(b) the details of the means by which payment will be affected.
(3) An auctioneer conducting an auction via the internet or other electronic medium or
platform may not exclude liability if any goods purchased by auction are not
delivered to the purchaser thereof.

CPA – Consumer Protection Act

Live Auctions and On-line Auctions

The Consumer Protection Act extensively regulates auctions in section 45. This section does not provide a comprehensive definition of auction.

Section 45(1) It merely provides that an auction “includes a sale in execution of or pursuant to a court order, to the extent that the order contemplates that the sale is to be conducted by an auction”

Section 45(2) provides that when goods are put up for sale by auction in lots, each lot is, unless there is evidence to the contrary, regarded to be the subject of a separate transaction.

Section 45(3) provides that a sale by auction is complete when the auctioneer announces its completion by the fall of the hammer, or in any other customary manner, and until that announcement is made, a bid may be retracted.
Section 45(4) provides that notice must be given in advance that a sale by auction is subject to—

(a) a reserved or upset price/non-reserve; or
(b) (A Reserve Auction) a right to bid by or on behalf of the owner or auctioneer, in which case the owner or auctioneer, or any one person on behalf of the owner or auctioneer, as the case may be, may bid at the auction up to the reserve price.
Section 45(5) (A Non-Reserve Auction) provides that if notice is not given in advance that the owner or auctioneer has a right to bid, they are not allowed to bid at that auction, either in person or by employing someone else to bid on their behalf. If they do, a consumer may approach a court to declare the transaction fraudulent.

Section 45(6) provides that the Minister may prescribe requirements to be complied with by an auctioneer, or different categories of auctioneer, in respect of—
(a) the conduct of an auction;
(b) the records to be maintained with respect to property placed for auction; and
(c) the sale of any such property by auction.

Regulation 30(1) provides that auctions may be conducted via the internet or other electronic medium or platform, irrespective of where the server or other electronic medium or platform is situated, only if—
(a) it meets all requirements in respect of an auction provided for in these regulations or other applicable law, but with the necessary changes, if any, to suit an electronic medium or platform;
(b) the relevant internet website or electronic medium or platform is generally available to anyone over the age of 18 years at any time of the day;
(c) the relevant internet website or electronic medium or platform provides high standards of security for electronic transactions;
(d) the relevant internet website or electronic medium or platform provides for easy access to all records prescribed in these regulations in a generally used or accepted medium or format;
(e) the internet auction provider keeps the information contemplated in regulation 28 (4).
Regulation 28 (4) requires an auctioneer to create a vendor’s roll in which all details of the auction are recorded, which must, as a minimum, include—

(a) the advertising of the auction;
(b) the rules of auction;
(c) the bidders’ record;
(d) the declarations contemplated in regulation 21 (2) (h) and 27;
(e) a list of all goods on auction, including goods which were withdrawn from auction;
(f) the names of the successful bidders, the goods or lots bought and the prices paid in respect thereof;
(g) the details of any challenges to the validity of the auction or the conduct thereof, and the particulars of the persons making such challenges, if available;
(h) any items or lots not sold;
(i) the details of any reserved price or any matter contemplated in subsections (4) and (5) of section 45 of the Act.
Regulation 30(2) provides that to create the bidder’s record required by Regulation 26(2) a prospective bidder in an auction to be held via the internet or other electronic medium or platform must register by providing—

(a) his or her full names, identification or passport number, age, physical address, internet protocol address, and where applicable, login code or name, and password; and
(b) the details of the means by which payment will be affected.
Regulation 30(3) provides that an auctioneer conducting an auction via the internet or other electronic medium or platform may not exclude liability if any goods purchased by auction are not delivered to the purchaser thereof.

Contact Us

Sandhurst Military Auctioneers

Housed at
“The War Store”
18 Bolton Road
Parkwood
Johannesburg
011 268 6999

Alan Coleman
083 225 6729

Joe Vermaak
082 851 0285

email: schmidz@iafrica.com