Eric
06-11-2006, 08:01 AM
(from the email box)
Effective immediately, we are amending Section 13 of our Terms and Conditions to provide a formal identification in the lot description of any and all lots consigned from the personal collections of any executive or employee of Robert Edward Auctions (or any relative of any executive or employee). Because REA does not buy material for auction, in many ways this policy amendment is a non-event.
In the April 2006 auction, for example, a total of sixteen lots out of 1,411
would have been identified as property consigned from the personal collections of executives, employees, or their relatives (and we should add that every single one of these lots was purchased many years ago). So why are we even bothering doing this? Because Robert Edward Auctions believes that the many conflicts of interest that are so common and so accepted in the sports card and memorabilia auction world play a great role in promoting many of the most serious problems that are epidemic in the auction industry. Robert Edward Auctions strives to stand out as an example to the auction world, demonstrating how auctions ideally should be run. So while this policy amendment has no impact on REA, it is intended to be a call to action for all auction houses, and a wake up call to all collectors who participate in auctions. Bidders should never intentionally be misled about who owns the lots they are bidding on.
Some auctions have claimed they are not dealers, when in fact that is exactly what they are. Some auctions present collections of very well known collectors or ballplayers, and intentionally give the impression that these collections have been consigned, rather than the truth: that the collection has been purchased and is actually owned and is being sold by the auction house. If bidders are being intentionally misled about something as basic as who is really offering a collection, and a false impression is given that material has been consigned when this is not true, it is misleading both to bidders and to potential consignors, and it raises the question, “What else is not as it seems?”
We believe that collectors approach auctions very differently when they
understand that material presented is often owned by the auction company, as opposed to being consigned as represented, and are much less enthusiastic about bidding on all lots (including those lots which are actually consigned) in any auction in which they feel they have been intentionally misled. When collectors finally learn the truth about this issue, let alone when they come to understand that at many auctions the auction company consigns hundreds of lots, and its employees also consign hundreds of additional lots, and both the auction house and the employees bid in their own auctions, they become less enthusiastic bidders in those auctions.
This should be very important to all bidders and consignors. We are seeing a greater awareness of these issues that affect all lots in auctions which combine secretly owned auction-house lots and consignments. As collectors grow more sophisticated, they are gaining a greater understanding of the conflicts and misinformation that are regularly presented to them. It's time that all lots owned by auction houses, auction house executives, auction house employees, and their relatives be identified, as opposed to being camouflaged among consignments in a manner that could be interpreted as a deliberate charade of deception.
It is our hope that our amended Conflicts of Interest policies will promote a
greater awareness of these important issues and promote positive change. In the auction world, the integrity of the auction house and the bidding process are essential ingredients in promoting bidder confidence and also in promoting market confidence. In the long run, the market will put greater stock in auction results that everyone can take at face value and trust.
We thought our bidders and consignors would enjoy reading about what we think are important issues, along with REA’s philosophy (which is always evolving) and approach to auctions. We enjoy promoting thought about the auction process. We hope you have enjoyed reading about it.
Sincerely,
Robert Edward Auctions, LLC
www.RobertEdwardAuctions.com
Effective immediately, we are amending Section 13 of our Terms and Conditions to provide a formal identification in the lot description of any and all lots consigned from the personal collections of any executive or employee of Robert Edward Auctions (or any relative of any executive or employee). Because REA does not buy material for auction, in many ways this policy amendment is a non-event.
In the April 2006 auction, for example, a total of sixteen lots out of 1,411
would have been identified as property consigned from the personal collections of executives, employees, or their relatives (and we should add that every single one of these lots was purchased many years ago). So why are we even bothering doing this? Because Robert Edward Auctions believes that the many conflicts of interest that are so common and so accepted in the sports card and memorabilia auction world play a great role in promoting many of the most serious problems that are epidemic in the auction industry. Robert Edward Auctions strives to stand out as an example to the auction world, demonstrating how auctions ideally should be run. So while this policy amendment has no impact on REA, it is intended to be a call to action for all auction houses, and a wake up call to all collectors who participate in auctions. Bidders should never intentionally be misled about who owns the lots they are bidding on.
Some auctions have claimed they are not dealers, when in fact that is exactly what they are. Some auctions present collections of very well known collectors or ballplayers, and intentionally give the impression that these collections have been consigned, rather than the truth: that the collection has been purchased and is actually owned and is being sold by the auction house. If bidders are being intentionally misled about something as basic as who is really offering a collection, and a false impression is given that material has been consigned when this is not true, it is misleading both to bidders and to potential consignors, and it raises the question, “What else is not as it seems?”
We believe that collectors approach auctions very differently when they
understand that material presented is often owned by the auction company, as opposed to being consigned as represented, and are much less enthusiastic about bidding on all lots (including those lots which are actually consigned) in any auction in which they feel they have been intentionally misled. When collectors finally learn the truth about this issue, let alone when they come to understand that at many auctions the auction company consigns hundreds of lots, and its employees also consign hundreds of additional lots, and both the auction house and the employees bid in their own auctions, they become less enthusiastic bidders in those auctions.
This should be very important to all bidders and consignors. We are seeing a greater awareness of these issues that affect all lots in auctions which combine secretly owned auction-house lots and consignments. As collectors grow more sophisticated, they are gaining a greater understanding of the conflicts and misinformation that are regularly presented to them. It's time that all lots owned by auction houses, auction house executives, auction house employees, and their relatives be identified, as opposed to being camouflaged among consignments in a manner that could be interpreted as a deliberate charade of deception.
It is our hope that our amended Conflicts of Interest policies will promote a
greater awareness of these important issues and promote positive change. In the auction world, the integrity of the auction house and the bidding process are essential ingredients in promoting bidder confidence and also in promoting market confidence. In the long run, the market will put greater stock in auction results that everyone can take at face value and trust.
We thought our bidders and consignors would enjoy reading about what we think are important issues, along with REA’s philosophy (which is always evolving) and approach to auctions. We enjoy promoting thought about the auction process. We hope you have enjoyed reading about it.
Sincerely,
Robert Edward Auctions, LLC
www.RobertEdwardAuctions.com