South Australian Consolidated Acts

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FAIR TRADING ACT 1987 - SECT 28

28—Prohibition of mock auctions

        (1)         A person must not promote or conduct a mock auction of goods.

Maximum penalty: $5 000.

        (2)         Subject to subsection (3), an auction of goods is a mock auction if, but only if, during the course of the auction

            (a)         goods are sold for less than the highest bid made by the purchaser, or part of the purchase price is repaid or credited to the purchaser; or

            (b)         the right to bid for any goods is restricted to persons who have bought or agreed to buy other goods; or

            (c)         any goods are given away or offered as gifts.

        (3)         An auction of goods is not a mock auction by virtue of subsection (2)(a), if it is proved that the reduction in price or the repayment or credit (as the case may be) was made—

            (a)         because of a defect of which the auctioneer became aware after the highest bid had been made; or

            (b)         because of damage sustained after that bid was made.

        (4)         For the purposes of proceedings for an offence against this section—

            (a)         a statement, purporting to be a statement of fact, made by or on behalf of the auctioneer during the course of an auction of goods and tending to show that the auction is a mock auction is admissible as conclusive evidence of the fact stated; and

            (b)         anything done, before or after an auction, in or about the place where the auction has been or is to be held, if done in connection with the auction, will be taken to be done during the course of the auction.



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