Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Consumer transactions and auctions - Auctions

36ZB: Notice to participants

You could also call this:

“Rules for joining an auction must be clearly shown to everyone taking part”

When you take part in an auction, you need to know the rules. The person running the auction must make sure everyone can see these rules easily. If you’re at the auction in person, the rules should be shown where you can see them. If you’re joining the auction online, the rules should be on a website that’s easy to find.

The rules must tell you some important things. If the auction is selling things people usually buy for their homes, the rules must say if the seller is a business. They also need to tell you if there’s a minimum price the seller will accept. The rules should also say if the seller is allowed to make bids themselves.

Sometimes, different items in the auction might have different rules. If this happens, the person running the auction needs to tell you which rules apply to each item before they start selling it.

The person in charge of making sure all of this happens is usually the auctioneer. If the auctioneer is registered, they’re responsible. If not, it’s whoever is running the auction that day.

Remember, these rules are there to help you understand what’s happening in the auction. It’s important to read them carefully before you start bidding.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156669.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
Previous

36ZA: Start and end of auction, or

“How an auction starts and finishes, and what happens after”

Next

36ZC: Vendors selling in trade, or

“Rules for buying things at auctions from businesses”

Part 4A Consumer transactions and auctions
Auctions

36ZBNotice to participants

  1. Before and during any auction, notice of the terms of the auction must be readily available to view by all participants and potential participants in the auction, which means—

  2. for participants attending an auction in person, the notice must be displayed and readily available to view by all participants; and
    1. in any other case, the notice must be available to view, before and during the auction, on a readily accessible Internet site.

      1. The notice of terms must include notice of the following:

      2. in the case of an auction of goods of a kind ordinarily acquired for personal, domestic, or household use or consumption, whether the vendor of the goods is selling the goods in trade as a supplier (within the meaning of the Consumer Guarantees Act 1993):
        1. whether the sale is subject to a reserve price:
          1. whether vendor bids are permitted.

            1. If different terms apply with respect to different lots, the notice, or the auctioneer before starting the auction of each lot, must identify which terms apply.

            2. The person responsible for complying with the requirements of subsections (1) to (3) is,—

            3. if the auction is conducted by or on behalf of a registered auctioneer, the registered auctioneer; or
              1. in any other case, the auctioneer conducting the auction.

                Notes
                • Section 36ZB: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).