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VOL.3 April 2011
Do Auction Houses Need to Authenticate Artwork?

FOR

Wang Zhijun

Cultural Relics World magazine

The saying that adopting the exemption clause is following international rules is unreasonable. For example, Sotheby's, one of the world's oldest art auction houses, states that if the work is discovered to be a fake after the auction, Sotheby's will cancel the auction and refund the buyer with the same amount that he/she paid. Obviously, their practice is totally different from that in China.

Insiders may defend themselves with the excuse that it is difficult to identify the authenticity of artistic work as there are no unified standard and advanced means. I don't think this is a convincing argument. In modern society, the technological means have been greatly improved. Why can't we use modern technology to authenticate art?  In ancient China, there were experts who could authenticate what was real and what was fake. If we have no such experts today, where are the large sums of money being invested in training art experts being used?

 

Zhu Yongping

Lawyer

The current Auction Law should be amended. It conflicts with the legislative principle for being honest in doing business and the relevant provisions of China's Contract Law and the Law on the Protection of Consumers' Rights and Interests. The exemption clause infringes on consumers' interests.

As agents, auction houses make profits from earning commissions. As long as there is a profit margin, but no legal obligation due to the existence of the exemption clause, the auction houses will be brave enough to auction items that they cannot authenticate. In this way, more and more fake artworks will enter the auction market, causing disorder.

Making and auctioning fake artworks both infringe on consumers' interests. If such activities can't be restrained by law, art will not develop.

 

Du Zhaoyong

Research fellow

The current Auction Law is written by auction trade insiders, which unavoidably means they will protect their own interests. The legal provisions on the obligations of auction houses stipulated in this law are less than those on the artists and sellers in the Law on the Protection of Consumers' Rights and Interests and the Product Quality Law. Notwithstanding is the fact that there is no provision to stipulate that if the auction houses are suspected of conducting commercial fraud, they have to pay double indemnity to buyers. In view of these factors, it is hard for the Auction Law to strictly constrain the auction houses. When the law is amended, representatives of the buyers should be asked to participate in the legislative process.

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