As though this summer weren't already hot enough, on Thursday, August 12th, just as the warm and humid weather returned to New Hampshire for the HUGE opening crush at the New Hampshire Antique Dealers Show in Manchester, NH - the New Hampshire Board of Auctioneers posted a notice in the Manchester Union Leader concerning folks selling items for "others" at online auctions and via catalog, basically saying it was illegal unless these folks were licensed auctioneers in NH -Trust me, things can only get hotter from here on in.
This newspaper has dealt with a number of issues over the years: collusion; theft; bad checks...We chose Not to deal with the above "online auction" question before now, because frankly, we didn't think there was an issue.
Scenario: Mary (who lives in NH) has a sister Helen who lives in VT. Mary sells stuff on ebay auctions online. Helen. who doesn't own a computer, has some stuff she wants to sell and Mary says give it to her. She will "host" it on ebay for Helen and take 10% of whatever the stuff brings as a fee for her "time and energy." The stuff sells for $1000 and Mary pockets $100 (*her 10% commission fee for her time/energy).
According to the NH Board of Auctioneers, this would be illegal.
Scenario: Mary (who is an antiques & collectibles dealer living in NH) BUYS at "live" auctions merchandise which she then posts for herself on auctions on the internet and sells (hopefully for a profit).
According to the NH Board, this would be illegal because Mary is not a licensed auctioneer and NH law specifies you may not "circumvent" the law by buying for resale (see sidebar article)...you can only sell "your own merchandise", not merchandise purchased "for resale".
Scenario: Mary (who lives in a small Northern NH town) does so well with the merchandise she sells for her sister Helen, she lets her neighbors know about it. She even puts a sign up in the window of her house... "We will sell your items on the internet for a fee".
Last winter she sold over $28,000 worth of merchandise at online auctions for her neighbors, who were very happy... because they had NO money during the ice storm and no way to pay bills and no one could leave the area via car for almost 2 weeks due to fallen trees. Mary took in $2800 (10% commission) and she was Very Happy!
According to the NH Board, Mary was breaking the law because she charged her neighbors a fee/commis- sion, BUT she wasn't a licensed NH auctioneer-Maybe her neighbors should have gone over the border to New York or Connecticut, where auctioneers aren't licensed???
Scenario: Mary doesn't have a computer BUT she had heard that her Roseville pottery will bring "big bucks" on the internet. There is a group shop down the road from her house and the manager Fred tells her she can "consign" her pottery to an online auction thru the shop for a "10% sales fee and/or commission." Mary gives them her pottery, which sells for big bucks. Mary is very happy; the shop owner is happy and the local "licensed" NH auctioneer is very unhappy -
He had always hoped to sell Mary's Roseville pottery at one of his firm's "live" auctions. Instead, all that great merchandise was sold on the internet via auction by someone who wasn't even licensed, wasn't bonded, and basically wasn't "legit" in their eyes as an auctioneer.
Scenario: Mary doesn't have a computer BUT she had heard that her Dedham pottery will bring "big bucks" on the internet. There is a group shop down the road and the manager Larry tells her she can "consign" her pottery to an online auction for a "10% sales fee and/or commission." Mary gives them her pottery, which sells for big bucks. ONLY Mary Never Gets PAID!
According to the NH Board of Auctioneers, if someone at the shop had been licensed as an auctioneer in NH, they would have been bonded for $10,000 and Mary could have filed a complaint with the NH Board of Auctioneers. Now, instead, she can hire a lawyer or file in small claims court (good luck!)
So, Okay. This brings us back to the notice in the Thursday, August 12th Union Leader...We had 52 messages at the office when we returned that night from the shows in Manchester...
"What provoked this notice?" seemed to be the most common question, followed by the question "Are they going to enforce it?" and/or "This is a joke! This law is unenforceable!" followed by phone calls and email stating the Board's position was contrary to Federal law and the Federal government's position on e-commerce and expansion and growth of the internet...which should have no taxes, licensing and/or regulation, I was told.
Get A Grip! was the overall message most folks we spoke with wanted to forward to the NH Board of Auction- eers. This country was founded on "free enterprise" and "competition", one man said. "If you can't compete, then you're doing something wrong."
Instead of looking at your next door neighbor, pointing a finger and saying they are to blame for your misfortune or lack of success.. maybe you should be looking at yourself instead?
In December of 1997, the NH Board of Auctioneers, after a long and lengthy process and many public hearings, adopted a NEW set of Rules and Regulations governing auctions and auctioneers in the state of New Hampshire. Under Chapter Auc 500-Ethical Standards; Auc 501:02 Standards of Conduct (h):
Initially sounds like a lot of gobblety-gook, BUT NH law is very clear about the definition of an "auctioneer"-someone who engages in the business of selling property at auction "for another". While it is true that in NH a person can sell their own "stuff" at auction, whether live or online, there are exceptions. Example: you could sell your own house if you wanted to at auction and you could be the auctioneer and not need to be licensed. Just like you don't have to be a licensed real estate agent to sell your own house by private sale. BUT you can't sell YOUR NEIGHBOR'S HOUSE at auction (or by private sale) without either being a licensed auctioneer or a licensed real estate agent.
Example: You do so well selling your own house at auction, your neighbor wants you to sell their NH house at auction. You aren't licensed as a NH auctioneer, BUT tell your neighbor you'll "buy" his house and sell it at auction and whatever "profit" you make, you'll "split" with him...This would be a no-no, according to the above regulation. What the above section clarifies is that you CANNOT go out and buy your neighbor's NH house (who is selling cheap!), because you know it is a good buy and even though you don't have a NH auctioneer's license, personally sell the house at auction and make Big Bucks! Just because you now "own" the house and therefore "technically" are selling your own property, you "bought" it with the intention of selling it at auction...
Example: You are a dealer and walk into a group shop and see a GREAT vase for sale at $25 that you know would sell on ebay for $2500! You tell the shop owner you will put the vase on ebay for him for 20% of the selling price...this would be a no-no if you aren't a NH licensed auctioneer, as you would be "selling for another". SO, you tell the shop owner you will buy the vase (now you own it) and will sell it, blah blah! This also would be a no-no, based on the above regulation.
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