3.4 Auctioneers Act 1928

The Auctioneers Act has the objective of protecting consumers from financial loss caused by unreliable or incompetent auctioneers. Auctioneers are required to be licensed under the Act to undertake auctioneering services. Exceptions are that the Real Estate Agents Act 2008 allows individuals licensed under that Act to sell or offer to sell any land without having to also be licensed under the Auctioneers Act; and motor vehicle auctioneers can choose to be registered under the Motor Vehicle Sales Act 2003.

The Act specifies how a person becomes a licensed auctioneer. Entry to the occupation is dependent upon applicants being able to satisfy a District Court Judge that they are "fit and proper" and financially secure.

Section 43 of the Act provides for the making of regulations for licensing auctioneers. The Act also details offences and their resulting penalties.

The Auctioneers Act defines what an auction is for the purpose of the occupational regulation of auctioneers, but it does not include any other rules or protections for consumers buying goods by auction. Under section 2 of the Act, a sale by auction involves,

“the selling of property of any kind … by outcry, by the auctioneer saying ‘I’ll take’ and commencing at a higher figure and going to a lower figure, by what is known as Dutch auction, knocking-down of hammer … or any other mode whereby the highest, the lowest, or any bidder is the purchaser, or whereby the first person who claims the property submitted for sale at a certain price named by the person acting as auctioneer is the purchaser, or where there is a competition for the purchase of any property … in any way commonly known and understood to be by way of auction …”⁶

To further clarify this definition, “outcry” is also defined in section 2 of the Act as “any request … made … by means of signs, speech, or otherwise in the presence of not less than 6 people by any person for the purpose of selling any property offered or available for sale …”
Types of property commonly sold by auctions include general chattels, art, livestock, fresh produce, motor vehicles and real estate.

The actual rules for conducting auctions of goods are in the Sale of Goods Act 1908, and a similar section covering the sale by auction of land is found in the Property Law Act 2007. These provisions are based on the Sale of Goods Act 1893 from the United Kingdom, and similar provisions are still in force in the United Kingdom, Canada, and Australia. In New Zealand, these rules apply to the exclusion of the Consumer Guarantees Act, which specifically does not apply to goods supplied at auctions and competitive tenders under section 41(3).

Enforcement

The Act is enforced by the New Zealand Police, and it also allows for private or self-enforcement.

Footnotes

6. Auctioneers Act 1928, section 2.