The President of the Office of Competition and Consumer Protection has completed proceedings concerning practices used by the largest art auction houses in Poland. The review covered regulations, contract templates and complaint procedures used by five entities: Desa Unicum, Sopocki Dom Aukcyjny, Dom Aukcyjny Polswiss Art, Agra Art and Rempex.
UOKiK’s concerns focused primarily on the rules governing auctions, including situations in which auctioneers or employees of auction houses could take part in bidding while appearing to act as ordinary clients. According to the authority, such practices could mislead consumers, who might believe they were competing against other genuine buyers interested in a given work of art.
Auction house employees could bid like ordinary clients
One of the main objections raised by the President of UOKiK concerned the possibility of auction houses participating in their own auctions. This involved situations in which employees or auctioneers increased the price of an item up to the so-called guaranteed price. This is the minimum amount for which an object may be sold, agreed confidentially between the seller and the auction house.
UOKiK’s analysis showed that four of the five auction houses examined — Desa Unicum, Sopocki Dom Aukcyjny, Agra Art and Rempex — reserved the right to participate in auctions in this way. Employees could appear as bidders and, in some cases, even outbid their own offers.
In UOKiK’s view, this could distort the picture of actual interest in a given work of art. Each subsequent bid could be interpreted by buyers as a signal that other auction participants were willing to pay more. In practice, this could influence consumer decisions and lead to an artificial increase in the final price.
“Seeking to ensure that consumers are not misled, we asked auction houses to stop the practice of raising prices up to the guaranteed price. Buyers at auctions may not have known that they were bidding against employees of auction houses. Each bid could have been treated by them as genuine interest in the artwork and a real offer to purchase it. This could have completely changed the dynamics of the auction and artificially shaped the valuations of the items on offer,” said UOKiK President Tomasz Chróstny.
UOKiK also challenged other provisions in auction regulations
The review was not limited to the issue of price bidding. UOKiK also analysed other practices and contractual provisions used by auction houses. The authority raised concerns about clauses limiting or excluding liability for hidden physical and legal defects in the objects being sold.
UOKiK also drew attention to provisions concerning errors in item descriptions, changes to auction terms after an auction had started, and the possibility for an auctioneer to withdraw an object without important and objective reasons. The authority also examined clauses allowing auctions to be repeated after a successful bid had already been accepted, as well as provisions concerning changes to catalogue descriptions.
In addition, the President of UOKiK challenged incorrectly indicated deadlines related to withdrawal from contracts, filing complaints and responding to complaints. Such provisions could make it more difficult for consumers to exercise their rights or mislead them as to the scope of protection available to them.
Auction houses changed their regulations
All the entities examined cooperated with the authority during the explanatory proceedings. Desa Unicum, Sopocki Dom Aukcyjny, Dom Aukcyjny Polswiss Art, Agra Art and Rempex adjusted their regulations and contract templates in line with the comments made by the President of UOKiK.
As a result of the intervention, practices that could have infringed collective consumer interests or constituted prohibited contractual clauses were eliminated. The auction houses also removed the possibility for people connected with the auction organiser to artificially raise prices up to the guaranteed price.
“Thanks to our intervention and dialogue with the largest players on the art market, we have managed to ensure transparent bidding conditions. Auction houses changed their regulations and contractual provisions that were unfavourable to consumers, and eliminated the possibility of artificially raising prices. During the proceedings, higher standards of conduct were developed, and art lovers will no longer be exposed to misleading practices,” said UOKiK President Tomasz Chróstny.
Greater transparency on the art market
The case is important not only for auction participants, but also for the entire art market. Auctions are based on trust in the organiser, transparency of rules and the belief that the final price reflects genuine interest from buyers. If a bidder does not know that they are competing with a person acting in the interest of the auction house or the seller, they may make decisions based on incomplete information.
UOKiK’s intervention is therefore intended to increase the transparency of auctions and reduce the risk of artificial influence on prices. Changes to the regulations of the largest auction houses mean that consumers should receive clearer information about the rules of sale, liability for the objects offered and complaint procedures.
For buyers of works of art, this means stronger protection and more transparent conditions for participating in auctions. For auction houses, it means the need to apply standards that not only comply with consumer law, but also strengthen the credibility of the market.
