Mock Auctions Ordinance


Published: 1997-06-30

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Cap 255 - MOCK AUCTIONS ORDINANCE 1

Chapter: 255 MOCK AUCTIONS ORDINANCE Gazette Number Version Date

Long title 30/06/1997


To prohibit certain practices relating to sales purporting to be sales by auction.


[25 April 1975]

(Originally 28 of 1975)

Section: 1 Short title 30/06/1997


This Ordinance may be cited as the Mock Auctions Ordinance.

Section: 2 Interpretation 30/06/1997


(1) In this Ordinance, unless the context otherwise requires-
"competitive bidding" (競投) includes any mode of sale by which prospective purchasers can compete for the

purchase of articles, whether by way of increasing bids or by the offer of articles to be bid for at successively
decreasing prices or otherwise;

"lot" (批貨) means a lot consisting of or including one or more prescribed articles;
"prescribed article" (訂明物品) means any article belonging to a class of article specified in the Schedule;
"sale of goods by way of competitive bidding" (以競投方式售賣貨品) means any sale of goods at which the

persons present, or some of them, are invited to buy articles by way of competitive bidding;
"stated" (述明), in relation to a sale of goods by way of competitive bidding, means stated by or on behalf of the

person conducting the sale, by an announcement made to the persons for the time being present at the sale.
(2) For the purposes of this Ordinance-

(a) any bid stated to have been made at a sale of goods by way of competitive bidding shall be
conclusively presumed to have been made, and to have been a bid of the amount stated;

(b) any reference in this Ordinance to the sale of a lot to a person who has made a bid for it includes a
reference to a purported sale of it to a person stated to have bid for it, whether that person exists or not;
and

(c) any thing done in or about the place where a sale of goods by way of competitive bidding is held, if
done in connection with the sale, shall be taken to be done during the course of the sale, whether it is
done at the time when any articles are being sold or offered for sale by way of competitive bidding or
before or after any such time.

[cf. 1961 c. 47 s. 3 U.K.]

Section: 3 Offence to promote or conduct a mock auction 30/06/1997


(1) Any person who promotes or conducts, or assists in the promotion or conduct of, a mock auction at which
one or more lots are sold or offered for sale shall be guilty of an offence and shall be liable on conviction on
indictment to a fine of $20000 and to imprisonment for 5 years.

(2) Subject to subsection (3), for the purposes of this Ordinance a sale of goods by way of competitive bidding
shall be taken to be a mock auction if, during the course of the sale,-

(a) any lot is sold to a person bidding for it, and-
(i) the lot is sold to him at a price lower than the amount of his highest bid for it;
(ii) the whole or any part of the price at which the lot was sold is subsequently refunded or credited

to him or his nominee; or
(iii) the money, or any part of the money, used to pay for the lot has been provided by the person

promoting or conducting the sale or by any person assisting him;
(b) the right to bid for any lot is restricted, or is stated to be restricted, to persons who have bought or

agreed to buy one or more articles;



Cap 255 - MOCK AUCTIONS ORDINANCE 2

(c) any articles are given away or are offered as gifts; or
(d) any lot placed or wrapped in an opaque container or wrapper is sold or offered for sale without the

contents of the container or wrapper being disclosed.
(3) A sale of goods shall not be taken to be a mock auction by virtue of subsection (2)(a), if it is proved that the

reduction in price, or the refund or the credit, as the case may be,-
(a) was on account of a defect discovered after the highest price in question had been made, being a defect

of which the person conducting the sale was unaware when that bid was made; or
(b) was on account of damage sustained after the bid was made.

(4) A sale of goods shall not be taken to be a mock auction by virtue of subsection (2) if the sale is held by or
for the purposes of any trust or organization which is a charity within the meaning of section 2 of the Registered
Trustees Incorporation Ordinance (Cap 306).

(5) In any proceedings for an offence of assisting in the promotion or conduct of a mock auction, the accused
shall have a good defence if he satisfies the court that, although he did the act in question, he did not know, and had no
reason to believe, that the sale of goods by way of competitive bidding to which the charge relates was a mock
auction.

[cf. 1961 c. 47 s. 1 U.K.]

Section: 4 Liability to pay compensation 30/06/1997


(1) A person who promotes or conducts a mock auction in contravention of section 3 shall, in addition to any
liability he may incur under that section, be liable to pay compensation by way of damages to any person who has
sustained pecuniary loss as a result of having purchased any prescribed article at the mock auction.

(2) An action may be brought under subsection (1) in respect of a contravention referred to in that subsection
notwithstanding that no person has been charged or convicted under section 3 in respect of the contravention.

(3) Where a person is convicted of an offence under section 3, an order for the payment of compensation may
be made under section 73 of the Criminal Procedure Ordinance (Cap 221) or section 98 of the Magistrates Ordinance
(Cap 227), as the case may be, and those sections shall apply accordingly.

(4) If an action is brought under subsection (1) after an order has been made under section 73 of the Criminal
Procedure Ordinance (Cap 221) or section 98 of the Magistrates Ordinance (Cap 227), the court shall, if it decides to
award damages, take into consideration the amount of compensation awarded under the order.

(5) Nothing in this section limits or diminishes any liability which any person may incur under the common
law.

Section: 5 Amendment of Schedule 71 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 71 of 1999 s. 3


The Chief Executive may, by order published in the Gazette, amend the Schedule.
(Amended 71 of 1999 s. 3)


Schedule: SCHEDULE 30/06/1997


[sections 2 & 5]


PRESCRIBED ARTICLES

1. Any plate or plated articles.

2. Linen or articles of clothing.

3. Pictures or prints.

4. China, glassware or antiques.




Cap 255 - MOCK AUCTIONS ORDINANCE 3

5. Items of furniture.

6. Items of jewellery.

7. Household appliances and utensils.

8. Electrical appliances and equipment.

9. Articles of personal use or ornament.

10. Ornaments and musical instruments.

11. Any scientific instrument or apparatus.