XN000022-1975-03-14 — Page 5

FRIDAY, MARCH 14, 1975

MOCK AUCTIONS TO BE BANNED

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MOCK AUCTIONS ARE TO BE PROHIBITED AND OFFENDERS ARE LIKELY TO END UP IN JAIL, IF PROPOSED NEW LEGISLATION GAZETTED TODAY IS ACCEPTED.

THE PROVISIONS ARE CONTAINED IN THE MOCK AUCTIONS BILL WHICH WILL BE INTRODUCED IN THE LEGISLATIVE COUNCIL SHORTLY.

A SPOKESMAN FOR THE LEGAL DEPARTMENT EXPLAINED TODAY THAT THE EXISTING LAW ONLY COVERED THE OPERATION OF GENUINE AUCTIONS, BUT FROM PAST EXPERIENCE IT WAS CONSIDERED NECESSARY TO CONTROL MOCK AUCTIONS AS WELL TO PROTECT THE PUBLIC INTEREST.

BECAUSE OF THE ABSENCE OF LEGISLATION ON MOCK AUCTIONS, 1 HE SAID, CHARGES WERE UNSUCCESSFULLY BROUGHT LAST YEAR AGAINST SOME PERSONS WHO WERE THOUGHT TO HAVE CONDUCTED A MOCK AUCTION WITH THE INTENTION TO DEFRAUD.

THE DEFENDANTS WERE ACQUITTED IN COURT BECAUSE, ALTHOUGH THE COURT HELD THAT A BUSINESS WAS BEING CONDUCTED WHICH HAD THE APPEARANCE OF AN AUCTION, THE WHOLE PROCEEDINGS WERE IN FACT A SHAM AND THE CHARGE AGAINST THE DEFENDANTS OF CONDUCTING THE BUSINESS OF AN AUCTIONEER WITHOUT A LICENCE COULD NOT BE UPHELD.

AT THE TIME, THE COURT WAS OF THE OPINION THAT NO LICENCE WAS NEEDED TO CARRY ON THE SORT OF BUSINESS (ALTHOUGH UNDESIRABLE) WHICH THE DEFENDANTS HAD BEEN CARRYING ON, AND THAT THE LAW NOW IN FORCE DID NOT COVER MOCK AUCTIONS.

THE BILL NOW SEEKS TO PROHIBIT MOCK AUCTIONS AND LAYS DOWN A MAXIMUM FINE OF $20,000 AND IMPRISONMENT FOR FIVE YEARS AGAINST AN OFFENDER FOUND GUILTY ON INDICTMENT OF PROMOTING OR CONDUCTING, OR ASSISTING IN THE PROMOTION OR CONDUCT OF, A MOCK AUCTION.

UNDER THE BILL, A SALE OF GOODS BY WAY OF COMPETITIVE BIDDING WILL BE TAKEN TO BE A MOCK AUCTION IF DURING THE SALE ANY ARTICLE IS SOLD TO A BIDDER AT A PRICE LOWER THAN THE AMOUNT OF THE HIGHEST BID, OR IF ALL OR PART OF THE PRICE PAID IS SUBSEQUENTLY REFUNDED, OR IF PART OR ALL OF THE MONEY HAS BEEN PROVIDED BY THE PERSON (OR HIS ASSISTANT) CONDUCTING OR PROMOTING THE AUCTION.

AN AUCTION WILL ALSO BE CONSIDERED A MOCK AUCTION IF THE RIGHT TO BID FOR ANY ARTICLE IS RESTRICTED TO PERSONS WHO HAVE BOUGHT OR AGREED TO BUY ONE OR MORE ARTICLES AND IF ANY ARTICLE IS GIVEN AWAY OR OFFERED AS A GIFT, OR IF AN ARTICLE IS WRAPPED OR PLACED IN A CONTAINER WITHOUT THE CONTENTS BEING DISCLOSED.

/HOWEVER