Intellectual Property Rights from Publicly Financed Research and
R 385
Consumer Protection Act, 2008 (Act No. 68 of 2008)RegulationsConsumer Protection Act Regulations20. General rules on advertising of auctions |
| 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 subregulation (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 subregulation (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 subregulation (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 subregulation (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) | Subregulations (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) | Subregulations (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) | Subregulations (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) | Subregulations (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) | Subregulation (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. |
