This information is obtained from auction industry insiders who do not themselves engage in unlawful or deceptive advertising. There are many well-known, reputable firms that conduct honest absolute auctions---often resulting in real bargains for the consumer. These firms have the right to advertise such auctions as being "absolute" when sale items are guaranteed to be sold to the highest bidder. There is, however, a handful of companies, mainly among those that specialize in construction and heavy equipment auctions, that conspire with the consignor (actual owner of the item) to mislead the consumer by advertising an "absolute" auction---usually even stating clearly that "every item will be sold to the highest bidder, regardless of price." What they don't tell you is that consignors
can (and do) register as bidders and then bid on merchandise they already
own. This insures the consignor will get the kind of return he expects
on his investment. If it happens that he is the only bidder when
the item reaches a satisfactory price, he then "buys back" the item, and
In order to keep consignors who regularly put equipment in these so-called "absolute" auctions, the auction company will instruct them to either attend the auction to bid on their item(s) or to send someone to do it for them. Regular consignors that participate in such deceitful and possibly illegal practices include some who make a living buying and selling at auctions, as well as local and national construction companies, new and used equipment dealers, and equipment rental agencies who have items they no longer want or need. In many cases, more than half of the sale items "sold to the highest bidder" actually go back to the original owners. While the consignor's complicity in all this cannot be excused, it is ultimately the auction company that has engaged in deceptive advertising and has benefited from deceiving the consumer, who will usually buy something just to make it "worth the trip." The National Auctioneers Association is a professional assocation that establishes the ethical standards for its members. Auctioneers are not required by law to belong to this organization, however. If the NAA logo is not included in the company's advertising, chances are this company is not willing to adhere to NAA standards. The National Auctioneers Assocation is in no way responsible for the content at this site and apparently makes no attempt to police the activities of nonmembers. It is, however, a source of additional information and may provide a listing of NAA members. A glossary of auction industry terms and their definitions can be found at the Auction Advisory (not affiliated with this site or the NAA.) The U. S. Consumer Protection Agency and the Better Business Bureau for the U. S. and Canada have been informed of these misleading and possibly illegal practices, but we encourage you, the consumer, to contact your local chapters of those and/or other consumer watchdog groups for further information on deceptive advertising and how to protect your rights as a consumer. |