CPA ensures bidders get what they pay for at auction

An auction presents an exhilarating opportunity to buy and sell goods at a fair price – whether bidding on a cherished collectible or seeking a valuable commodity.

However, behind the scenes of this bustling marketplace lies a framework of regulations and consumer protections, ensuring fairness, transparency and integrity in every transaction. It is watched over by the industry regulator, the South African Institute of Auctioneers (Saia) which ensures industry specific legislation and regulations are adhered to or are challenged if wrongdoing is suspected.

The auction industry also operates within the ambit of the Consumer Protection Act (CPA), a pivotal legislation safeguarding the rights of consumers and shaping the conduct of businesses across various sectors. In order to assist consumers to understand their rights, Saia board members, Nico Maree, left, and Philip Powell, right, with almost 50 years of service to Saia among them, shed light on how the CPA influences auctions and ensures consumers get the service and products they paid for.

Saia is guided by a robust code of conduct and ethics. It upholds industry standards with meticulous adherence to ethical practices and ensures smooth governance and administration, which aims to foster trust and confidence.

That is the reason why Maree underscores the critical importance of authenticity and quality assurance in the auction process.

Where necessary, the auctioneer may be required to engage appraisers and experts to validate the authenticity and value of items on auction.

The auctioneer must ensure compliance with Regulation 22, which mandates written authorisation for asset sales, accompanied by meticulous verification processes to confirm ownership and authenticity.

In instances where discrepancies arise between the purchased item and its description, the CPA offers recourse for buyers.

Powell explains the importance of clearly defined mandates, outlining the terms of engagement between buyers, sellers and auctioneers.

Mandates delineate crucial aspects such as reserve prices, post-auction negotiations and auctioneer remuneration, fostering transparency and avoiding misunderstandings. Buyers and sellers are, therefore, urged to familiarise themselves with auction rules and terms to facilitate smooth transactions and pre-empt disputes. –