July 21, 2006—For Immediate Release

DOL cautions consumers about traveling auctions

OLYMPIA—The Washington State Department of Licensing (DOL) is warning consumers to be cautious when attending auctions held by out-of-state companies that advertise expensive items such as original works of fine art, Persian rugs, antique furniture and jewelry.

Consumers in Washington and other states have filed complaints against traveling auction companies, alleging that the values of some items were inflated because the items were misrepresented. These consumers were often unable to contact the auction company afterward because it has left the state.

Investigators from DOL will be attending traveling auctions in Bellingham and Issaquah this weekend to serve a subpoena requiring auctioneer Anwar M. Khan and his company, Burnham Security and Credit Co., to provide the state with copies of documentation including inventory lists and certificates of authenticity for merchandise offered for sale.

Traveling auction companies can pose significant risks to buyers who bid on items they have not had time to properly evaluate for authenticity. Expert knowledge is required to authenticate these high-end items.

DOL officials recently became aware that traveling auction companies are sometimes forming partnerships with real estate agents to secure auction sites on the grounds of luxury homes offered for sale across the country. Consumers should be aware that in these cases, the merchandise offered for sale might have no connection to the home being sold or the home’s owner.

Individuals who call bids at an auction in the state of Washington must have a license issued by the Department of Licensing. Companies that sell or offer to sell goods at auction also are required to have an auction company license. Consumers should be aware that this industry is required to:

• Be licensed in the state of Washington
• Have a surety bond or security on file with DOL
• Enter into a written contract containing the terms and conditions upon which the auctioneer/auction company receives or accepts the property for sale
• Have a current license on display or available at all times
• Will always include an auctioneer license number in advertising
• Disclose the name of the person on whose behalf the bid or offer is being made
• Not use any method of bidding at an auction that will allow goods or real property to be purchased in an undisclosed manner on behalf of the auctioneer or auction company
• Not fictitiously raise any bid, or use another person to act as a bidder or buyer
• Communicate to consumers that all items are subject to a reserve or a confirmation from the owner or consignor unless the auctioneer or auction company announces differently
• Not use any method of bidding at an auction that allows the auctioneer or auction company to avoid selling any property offered for sale at the auction

The status of auctioneer licenses can be verified at www.dol.wa.gov. Consumers can file a complaint by calling (360) 664-6645.