ohn Flanagan, Republican state senator from New York, recently introduced legislation aimed at eradicating “chandelier bidding” at auction houses. Chandelier bids are nonexistent bids that auctioneers call out—usually with their gaze fixed at a point in the auction room that is difficult for the audience to pin down—in order to create the appearance of greater demand
Never gone to Vote
In a nutshel:
S. 2523--A 2
1 3. NO AUCTIONEER OR AUCTION HOUSE MAY SOLICIT, ACCEPT, OR APPEAR TO
2 SOLICIT OR ACCEPT SHAM BIDS UNLESS SUCH BIDS ARE IDENTIFIED WITH THE
3 TERM "FOR THE CONSIGNOR".
AN ACT to amend the general business law, in relation to disclosure of
sham bids and house bids at public auctions and requirements for
auction sale of advertised property; prohibited bids
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The general business law is amended by adding a new section
2 29 to read as follows:
3 S 29. SHAM BIDS. 1. DEFINITIONS. A. THE TERM "SHAM BID", AS USED IN
4 THIS SECTION, MEANS ANY BID FOR WHICH THERE IS NO BONA FIDE OFFER OR
5 WHICH IS NOT A BONA FIDE BID, ANY BID MADE BY OR ON BEHALF OF THE SELL-
6 ER, AND BIDS COMMONLY KNOWN AS BUT NOT LIMITED TO "CHANDELIER", "CONSEC-
7 UTIVE", OR "SUCCESSIVE" BIDS.
2005-2006 A. BRODSKY
A03514Prohibits acceptance of sham or chandelier bids by auctioneers without disclosure; requires absolute auction to sell to highest bidder
2003-2004M. of A. BRODSKY and S. Spano;
A01254Prohibits acceptance of sham or chandelier bids by auctioneers without disclosure; requires absolute auction to sell to highest bidder
S02523Prohibits acceptance of sham or chandelier bids by auctioneers without disclosure; requires absolute auction to sell to highest bidder
2000-2001 Term — M. of A. BRODSKY and S. Spano;
A01317Prohibits acceptance of sham or chandelier bids by auctioneers without disclosure; requires absolute auction to sell to highest bidder
S07324Prohibits acceptance of “sham” or “chandelier” bids by auctioneers without disclosure; requires absolute auction to sell to highest bidder
1999-2000 Term Introduced b M. of A. BRODSKY and S. Spano;
A03847Prohibits acceptance of sham or chandelier bids by auctioneers without disclosure
22 3. NO AUCTIONEER OR AUCTION HOUSE MAY SOLICIT, ACCEPT OR APPEAR TO
23 SOLICIT OR ACCEPT SHAM BIDS UNLESS SUCH BIDS ARE IDENTIFIED WITH THE
24 TERM "FOR THE CONSIGNOR".
S07536Prohibits acceptance of “sham” or “chandelier” bids by auctioneers without disclosure22 3. NO AUCTIONEER OR AUCTION HOUSE MAY SOLICIT, ACCEPT OR APPEAR TO
23 SOLICIT OR ACCEPT SHAM BIDS UNLESS SUCH BIDS ARE IDENTIFIED WITH THE 24 TERM "FOR THE CONSIGNOR".
A01254Prohibits acceptance of sham or chandelier bids by auctioneers without disclosure; requires absolute auction to sell to highest bidder
S02523Prohibits acceptance of sham or chandelier bids by auctioneers without disclosure; requires absolute auction to sell to highest bidder
Add SS29 & 29-a, Gen Bus L
Prohibits the acceptance of chandelier bids or sham bids by auctioneers without
disclosure; requires "for the consignor" identification of such bids; requires
that property advertised to be sold at auction regardless of price ("absolute
auction") shall be sold to the highest bidder; requires disclosure of "auction
house bids" and prohibits acceptance of a bid made by or on behalf of the owner
or consignor of such property.
However, auctioneer may not start at the lowest minimum because it is bound by the confidentiality promise to the consignor and thus buyers will know and auctioneer will not be doing the service promised -- get the highest price.
Psychological
Theatrical
Historical
Introduced by Sen. Spano --
Disclaimer: This article is for educational purposes only and is not meant to provide legal advice. Readers should not construe or rely on any comment or statement in this article as legal advice. For legal advice, readers should seek a consultation with an attorney.
