Advertising, Consumer Protection, and Ethical Conduct
What this domain tests
This domain tests truthful advertising, required disclosures, consumer-protection exposure, and ethical conduct in bidding and dealing.
Core rules
- Advertising must be accurate and not misleading. State material terms: whether the sale is absolute or with reserve, buyer premium, deposit, fees, payment methods, removal deadlines, and material defects known to the seller or auctioneer.
- 'Absolute' means no reserve and no seller bidding; do not use the word for a reserve sale. With-reserve sales should say so clearly.
- The Louisiana Unfair Trade Practices and Consumer Protection Law, La. R.S. 51:1401 et seq., reaches deceptive and unfair acts in trade or commerce. Misleading auction advertising can trigger private remedies and board discipline.
- Ethical duties include loyalty, confidentiality, fair dealing, disclosure of conflicts, no shill bidding, no bid rigging, no bidder collusion, and no self-dealing without disclosure.
- Online and social-media ads are advertising. The same claims, disclaimers, and recordkeeping apply.
Worked example
An ad reads: 'Absolute auction-everything sells to the highest bidder!' The seller has actually set reserves on several lots, and the auctioneer knows it. A bidder travels to the sale and is told the top lots did not meet reserve. The absolute claim is deceptive; the auctioneer should correct the advertising, disclose the reserve status, and may face LUTPA exposure and licensing discipline. Calling the sale with reserve would have avoided the misrepresentation.
Traps
Using 'absolute' loosely; hiding the buyer premium until registration; omitting material defects; posting 'must sell' when the seller can withdraw; and treating an online platform's terms as a substitute for Louisiana disclosures.