Why All Auction Houses Should Publish A Code of Ethics

[Archive]

Posted By: Bruce Dorskind

We were very pleased to receive the e-mail below from Mastro Auctions.

We believe it is the best interest of the hobby that all auction houses
publish (and honor) a code of ethics/professional conduct.

Whilst there is no reasonable way of ensuring that auctioneers who issue
said code will adhere to it, pressure from the collecting/investing community,
will certainly go a long way to ensuring that they, in fact, do.

Perhaps. our hobby, has finally matured to the point, where all of the partiipants
recognize that without trust and integrity all one really has a bunch of pictures
of men on old cardboard. The market in rare sports collectibles trades in the hundreds
of millions of dollars, and the total value of the collections is well in excess
of $ 2 billion dollars.

We're pleased that Doug Allen addressed the challenges of the market and the concerns
of his customers in a direct and professional manner.

We expect the same from those firms that have yet to do so. At very least all auction
houses MUST note when they own an item, and what their policies are with regard
to employees bidding.

Mastro Auctions

Code of Professional Conduct

1. Disclosure of Ownership

Mastro Auctions allows employees, authenticators, the Mastro Auctions corporate entity and other third party affiliates to own and consign items in Mastro Auctions’ sales. Mastro Auctions will disclose in its catalogs which items are owned by any of the aforementioned parties. PLEASE NOTE: The definition of ownership extends to spouses and immediate family members associated with the aforementioned groups.

2. Mastro Auctions Employee Bidding Rules

Certain Mastro Auctions employees are also collectors, and, similar to the practices followed by other major auction houses (e.g. Sotheby’s, Christies, etc.) are permitted to bid in Mastro Auctions sales. The following restrictions have been placed on the bidding practices of employee(s) to ensure fairness for all auction participants: · Mastro Auctions employees do not have access to ceiling or “top-all” bids. One designated administrative employee will have access to this information for the sole purpose of responding to bidding questions or for correcting bid errors. That designated individual will not be allowed to bid in the auction. · Mastro Auctions employees, the Mastro Auctions corporate entity, and all third party affiliates (authenticators, service providers, etc.) are considered related parties. These related parties are prohibited from bidding on each other’s consigned items. PLEASE NOTE: The definition of the Mastro Auctions “related parties” extends to family members.

3. Disclosure of Restoration

If Mastro Auctions believes or has knowledge that an item has been altered in any way, this information will be fully disclosed in the auction catalog. Occasionally, we will have items restored in order to improve their presentation quality. In these cases, the extent and nature of any restoration will be fully disclosed. Under no circumstances will we have restoration work done on trading cards.

4. Trading Card Guidelines

Mastro Auctions prohibits its employees from altering trading cards. Our policy on altering trading cards is in strict compliance with standards set by all major grading companies.

5. Use of Third Party Authenticators

Mastro Auctions is a company of experts. In almost all of the collecting genres handled by the company, there is an employee on staff who specializes in that area. As a result, before an item ever reaches a third party authenticator, it must first pass our scrutiny. Once an item that requires third party authentication has been accepted by Mastro Auctions, the following process will be employed: for each auction, the catalog will identify approved third party authenticating sources by category. We will not sell an item unless it has been authenticated by one of the listed third party authenticators.

6. Bidding Records

Effective for auctions held in 2007, all Mastro Auctions bidding records are maintained into perpetuity. These records are considered private and confidential. In order to maintain the privacy of our customers’ information, these records will not be voluntarily shared with any third parties.