Heritage Auctions Lawsuit

barrysloate · #1 09-13-2009, 03:54 PM

The first bid may be a hidden reserve.

Jim VB · #2 09-13-2009, 03:57 PM

Quote:

Originally Posted by barrysloate

The first bid may be a hidden reserve.

That was my first thought, Barry. But then they say "that Heritage doesn't compete or bid during auctions."

If their bid was designed to be a hidden reserve, they would have to use their bid to up the price once other bids were in, even if it was done automatically. To me, that's "bidding" during the auction.

barrysloate · #3 09-13-2009, 04:19 PM

Wes- I agree that giving a consignor a certain minimum guarantee is an accepted practice, and many times it's the prudent thing to do.

But a house bid that protects a lot should be placed only by the auction house. If I understand Heritage's policy, they are letting consignors place the bids themselves as they see fit? It's hard to imagine that is a good policy.

Peter_Spaeth · #4 09-13-2009, 04:52 PM

Quote:

Originally Posted by barrysloate

Wes- I agree that giving a consignor a certain minimum guarantee is an accepted practice, and many times it's the prudent thing to do.

But a house bid that protects a lot should be placed only by the auction house. If I understand Heritage's policy, they are letting consignors place the bids themselves as they see fit? It's hard to imagine that is a good policy.

If it helps them with consignors and doesn't hurt them with buyers, why isn't it a good policy?

Jim VB · #5 09-13-2009, 05:11 PM

Quote:

Originally Posted by Peter_Spaeth

If it helps them with consignors and doesn't hurt them with buyers, why isn't it a good policy?

Peter and Adam,

Aren't you guys making the point that what Heritage is accused of doing leaves them firm footing LEGALLY?

If so, I don't think most of us are disputing that. I'd like a better understanding of exactly what it is they're doing, but I do think they are probably within the letter of the law.

However, if this pseudo-bidding is functioning as a hidden reserve, then I think it needs to be spelled out more clearly.

It doesn't sound to me like this lawsuit will go anywhere, but it may have exposed something most bidders were unaware of.

Peter_Spaeth · #6 09-13-2009, 05:18 PM

In my opinion very few people if any would decline to bid on a card they really wanted or "needed" for a set just because they might get run up by the house. Even with all the allegations swirling around Mastro, who here "voted with his feet," to quote Lenin?

I commend Heritage for disclosing what goes on anyway in most auctions.

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