Auctioneer Ethics

Members of the American Auctioneers Association pledge to honor the association's Code of Ethics

The Code of Ethics of The National Auctioneers Association states that membership in the organization requires a professional commitment to colleagues, clients, customers and the general public that is beyond regulatory requirements and laws. The association's code of ethics was created to serve as a reference and guide for its membership and is posted at its website.

Fiduciary Duty and Conflict of Interest

Though members are duty bound to promote the seller's interests, they must always treat the buyer with fair dealing, honesty and integrity. In addition, members are prohibited from accepting any compensation that is related to the seller's offering without the clear knowledge of everyone involved in the transaction. Members also must notify any current or future seller about any possibility of conflict of interest and are prohibited from profiting on any expenses paid on the seller's behalf without the prior consent of the seller. Members are also prohibited from revealing confidential information about the seller without the seller's authorization.

The Law and Reporting Violations

Members are prohibited from activities that constitute the illegitimate practice of the law and must obey all laws that govern them. A member convicted of a felony related to auctioneering or auctions is be in violation of the Code of Ethics and subject to disciplinary action by the Board of Directors. Further, members with any knowledge of a breach of the Code of Ethics must report the violation and participate in any investigations or subsequent disciplinary proceedings when asked.

License Revocation and Unpaid Judgments

If a member's auctioneering license is revoked for wrongdoing or misconduct related to auctioneering or auctions within any jurisdiction in the United States, he is in violation of the Code of Ethics and subject to disciplinary action. In addition, any member owing an outstanding payment under a civil or criminal fine, levy, judgment or penalty is in violation of the Code of Ethics while the amount remains unpaid. Also, any money collected by a member on a seller's behalf must be maintained in a separate trust fund, escrow account or similar account in an appropriate financial institution.

Complaint Procedure

If a member is charged with a violation of the Code of Ethics, a copy of the formal complaint is forwarded to the member, as well as a request for the member's response to the charges. The Grievance Committee investigates the matter. If no violation is found, the member is notified. If the committee suspects that a violation has occurred, the member is asked to appear before a hearing by the Board of Directors to plead his case. If the Board finds against the member, the penalties range from private censure to revocation of membership.

References

• National Auctioneers Association: Code of Ethics