1964_MOCK_AUCTIONS_ORDINANCE_ORDINANCE — Page 3

CAP. 255]

Mock Auctions

(1975 Ed.

(Cap. 306.)

Liability to pay compensation.

(2) Subject to subsection (3), for the purposes of this Ordinance a sale of goods by way of competitive bidding shall be taken to be a mock auction if, during the course of the sale,—

(a) any lot is sold to a person bidding for it, and

(i) the lot is sold to him at a price lower than the amount of his highest bid for it;

(ii) the whole or any part of the price at which the lot was sold is subsequently refunded or credited to him or his nominee; or

(iii) the money, or any part of the money, used to pay for the lot has been provided by the person promoting or conducting the sale or by any person assisting him;

(b) the right to bid for any lot is restricted, or is stated to be restricted, to persons who have bought or agreed to buy one or more articles;

(c) any articles are given away or are offered as gifts; or

(d) any lot placed or wrapped in an opaque container or wrapper is sold or offered for sale without the contents of the container or wrapper being disclosed.

(3) A sale of goods shall not be taken to be a mock auction by virtue of subsection (2)(a), if it is proved that the reduction in price, or the refund or the credit, as the case may be,—

(a) was on account of a defect discovered after the highest price in question had been made, being a defect of which the person conducting the sale was unaware when that bid was made; or

(b) was on account of damage sustained after the bid was made.

(4) A sale of goods shall not be taken to be a mock auction by virtue of subsection (2) if the sale is held by or for the purposes of any trust or organization which is a charity within the meaning of section 2 of the Registered Trustees Incorporation Ordinance.

(5) In any proceedings for an offence of assisting in the promotion or conduct of a mock auction, the accused shall have a good defence if he satisfies the court that, although he did the act in question, he did not know, and had no reason to believe, that the sale of goods by way of competitive bidding to which the charge relates was a mock auction.

4. (1) A person who promotes or conducts a mock auction in contravention of section 3 shall, in addition to any liability he may incur under that section, be liable to pay compensation by way of damages to any person who has sustained pecuniary loss as a result of having purchased any prescribed article at the mock auction.

(2) An action may be brought under subsection (1) in respect of a contravention referred to in that subsection notwithstanding that no person has been charged or convicted under section 3 in respect of the contravention.