Online 'Trading Assistant' Calls the Sale
BidBridge PA LLC is registered as a trading assistant company. It runs a weekly online auction from a warehouse. Its principal, Chris, is a registered trading assistant, not a licensed auctioneer. The advertisement says: "Live-call auction every Thursday - absolute, no reserve, 5% buyer's premium." Chris calls bids on a live stream and closes lots. The company's ad lists "BidBridge PA" but no individual auctioneer name or license number. Chris says that because bidding is online, the auctioneer license law does not apply and trading assistants can "assist" with the sale. The company has 60 lots this week and has already collected $3,000 in buyer's premiums. The consignors have signed BidBridge's standard online consignment form.
1. Is Chris's bid-calling permitted under his trading assistant registration? Explain the scope of that registration.
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No. A trading assistant registration permits assisting with an auction; it does not authorize the registrant to conduct an auction or call bids as the auctioneer. Chris is doing the central auctioneering function: recognizing bids, controlling the pace, and closing lots. The fact that the sale is online does not remove it from the auction law. An online auction is still an auction, and a live-streamed call is still bid-calling. BidBridge cannot use a trading assistant registration as a substitute for an auctioneer license. The company needs a licensed auctioneer to conduct the sale, and that auctioneer must be identified in the advertising. Chris could perform registration, clerking, or platform support tasks within the trading assistant scope, but not act as the auctioneer of record.
2. What must the advertisement include, and what is the effect of listing only "BidBridge PA"?
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The advertisement must identify the licensed auctioneer conducting the sale, including the auctioneer's name and license number, along with the registered company name as required. Listing only "BidBridge PA" does not tell the public who is lawfully conducting the auction. It also hides whether anyone holds an auctioneer license. The ad's "absolute, no reserve" claim is a substantive representation that must match the actual terms. If BidBridge cannot name a licensed auctioneer, the ad is misleading and the sale is unlicensed. The company should correct the advertising before the next sale, identify the licensed auctioneer, and ensure the sale terms are accurate.
3. What are the Board consequences for Chris and BidBridge, and what should they do immediately?
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Chris and BidBridge face discipline for unlicensed auctioneering and for aiding unlicensed practice. The Board may treat the trading assistant registration as exceeded and may penalize the company for advertising and conducting auctions without a licensed auctioneer. The $3,000 in buyer's premiums shows the conduct was ongoing and commercial, not a one-time mistake. Immediately, BidBridge should stop Chris from calling bids, retain a licensed auctioneer to conduct the sales, correct all advertising to include the auctioneer's name and license number, and preserve records for the Board. Chris should not describe himself as an auctioneer or accept a role that controls bidding. The company should also review its consignment forms and website to remove any claim that online status creates an exemption.