Auctioneers Penalties and Sanctions

Auctioneers (AUC)

Texas Occupations Code, Chapter 1802

16 Texas Administration Code, Chapter 67

Class A:

1^st Violation, warning letter to $1,500

2^nd Violation, $1,000 to $2,500 and/or up to 6-month probated suspension

3^rd Violation, $2,000 to $4,000 per day not corrected plus 1-year probated suspension up to 1-year full suspension

• Failed to include name and license number in advertisement - 1802.051(b)
• Failed to include license number in yellow pages advertisement - 67.70(a)
• Failed to furnish to the Department name, address, and phone numbers of all auction companies - 67.70(b)
• Failed to provide Department with assumed names - 67.70(b)
• Failed to announce, give notice, display or disclose auctioneer is licensed - 67.70(e)(1)
• Failed to announce, give notice, display or disclose terms and conditions of the sale - 67.70(e)(2)
• Failed to announce, give notice, display or disclose if owner has reserved right to bid - 67.70(e)(3)
• Failed to notify consumers of Department information - 67.70(g)
• Failed to report change of address - 67.70(j), 67.72(d)

Class B:

1^st Violation, $500 to $3,000 and/or up to 6-month probated suspension

2^nd Violation, $2,000 to $4,000 plus 1-year probated suspension up to 1-year full suspension

3^rd Violation, $3,500 to $5,000 plus 6-month full suspension up to revocation

• Performing as an auctioneer or associate auctioneer without a license - 1802.051(a)
• Act as auctioneer for company not owned or operated by licensee - 1802.051(c)
• Allowed unlicensed auctioneer to call bids - 67.70(c)
• Advertised auction as “absolute” or “without reserve” when minimum bids required - 67.70(f)
• Failed to announce, give notice, display or disclose a buyer’s premium before auction - 67.70(e)(2)
• Failed to state buyer’s premium in advertisement - 67.70(h)
• In advertisement altered meaning of another statement in different size font - 67.70(i)
• Failure to have legitimate employee-employer relationship between associate auctioneer and sponsoring auctioneer - 67.71(a)
• Failure of supervising auctioneer to be on premises and directly supervising when associate is bid calling - 67.71(b)
• Failure of sponsoring auctioneer to notify the Department that sponsorship of associate auctioneer has been terminated - 67.71(d)(1)
• Failure of sponsoring auctioneer to provide signed documentation to associate auctioneer upon termination of sponsorship - 67.71(d)(2)
• Associate auctioneer providing auction services without a sponsoring auctioneer - 67.72(a), 67.72(e)
• Associate auctioneer bid called an auction without a sponsoring auctioneer on premises or providing direct supervision - 67.72(b)

Class C:

1^st Violation, $1,500 to $3,500 plus up to 1-year probated suspension

2^nd Violation, $2,500 to $4,500 plus 1-year probated suspension up to 2-year full suspension

3^rd Violation, $4,000 to $5,000 plus 1-year full suspension up to revocation

• Failed to account for or remit money belonging to another - 1802.251(5)
• Commingling funds of another with own funds - 1802.251(5)
• Failed to pay funds due to seller within 15 banking days of auction - 1802.251(5), 67.70(k)(4)
• Failed to maintain escrow account - 67.70(k)(1)
• Failed to deposit auction proceeds in escrow account within 72 hours of auction - 67.70(k)(2)
• Failed to pay public monies as required by law - 67.70(k)(3)
• Failed to keep records relative to an auction for 2 years - 67.70(l)
• Failed to include, in records kept for an auction, any of the following - 67.70(m):
  • names and addresses of consignors
  • date of the auction
  • name of auctioneer and clerk for sale
  • gross proceeds
  • location and account number of escrow account
  • itemized list of expenses charged to consignor
  • list of all purchasers
  • description and selling price of each item sold
• Failed to keep all documents relating to an auction - 67.70(n)

Class D:

1^st Violation, $2,000 to $4,000 plus 1-year probated suspension up to revocation

2^nd Violation, $3,000 to $5,000 plus 1-year full suspension up to revocation

3^rd Violation, $5,000 to revocation

• Flagrant course of misrepresentation or making false promises -
  1802.251(4)
• Violation of Business and Commerce Code (DTPA) - 1802.251(6)
• Used or permitted use of false bidders, cappers, or shills - 67.70(d)

Class E:

1^st Violation, Revocation

2^nd Violation, Revocation

3^rd Violation, Revocation

• Obtained license by fraud or false representation - 1802.251(2), 60.63(b)
• Substantial misrepresentation on application - 1802.251(3)
• Failed to comply with previous order of Commission/Executive Director - 51.353(a)
• Payment is made from the recovery fund as the result of an action of the license holder - 1802.252(a)
• Failed to pay the Department for a dishonored check - 60.82