KRS § 330.230 — KY Code / Title XXVI / Chapter 330 / Section 330.230
330.230 Auction advertising
Status: in_force

330.230 Auction advertising.

(1) Any advertising pertaining to an auction shall include the name of the managing

principal auctioneer for the auction and indicate that he or she is an auctioneer,

except that any advertising pertaining to an auction conducted at an auction house

operated by a licensed auction house operator shall include the name of the auction

house operator and indicate that he or she is an auction house operator or "AHO."

The advertising requirements in this subsection shall not apply to directional signs if

a sign with the name of the managing principal auctioneer for the auction or the

auction house operator is placed so that it can be easily observed and clearly read by

anyone entering the auction site.

(2) The existence and amount of any buyer's fee or buyer's premium shall be clearly

disclosed in all terms and conditions included in any advertisements for a particular

auction and in all terms and conditions presented or made available prior to the start

of a particular auction.

(3) (a) An auction shall not be advertised as "Court Ordered" or use similar wording

implying court action unless:

1. At least seventy-five percent (75%) of the items or lots in the auction

are being offered pursuant to one (1) or more federal, state, or local court

orders; and

2. The items or lots were clearly not purchased or attained for the purpose

of resale at auction.

(b) The advertising shall clearly contain an explanation of the court order

including identification of the court.

(c) If less than one hundred percent (100%) of the items or lots being offered at

the auction are pursuant to one (1) or more court orders, then the advertising

shall clearly indicate that the auction is "With Additions" or use similar

wording.

(d) This subsection shall not prohibit clear, nonmisleading advertising of the

inclusion of specific real or personal property being offered pursuant to a

federal, state, or local court order in an auction if that real or personal property

is offered pursuant to a federal, state, or local court order and was clearly not

purchased or attained for the purpose of resale at auction.

(4) (a) An auction shall not be advertised as a "Bankruptcy Auction" or "Items from

Bankruptcy" or use similar wording or any combination thereof unless:

1. The auction consists of at least seventy-five percent (75%) of items or

lots to be offered for one (1) or more open and working bankruptcies

under the jurisdiction of the United States Bankruptcy Court;

2. The items or lots were clearly not purchased or attained for the purpose

of resale at auction; and

3. The advertising clearly includes the United States Bankruptcy Court

case number or numbers.

(b) If less than one hundred percent (100%) of the items or lots being offered at

the auction are for one (1) or more bankruptcies, then the advertising shall

clearly indicate that the auction is "With Additions" or use similar wording.

(c) This subsection shall not prohibit clear, nonmisleading advertising of the

inclusion of specific real or personal property being offered for a bankruptcy

in an auction if that real or personal property is being offered for one (1) or

more open and working bankruptcies under the jurisdiction of the United

States Bankruptcy Court, was not purchased or attained for the purpose of

resale at auction, and the advertising clearly includes the United States

Bankruptcy Court case number or numbers.

(5) (a) An auction shall not be advertised as a "Seized Property Auction,"

"Confiscated Property Auction," or "Forfeiture Property Auction" or utilize

similar wording or any combination thereof implying governmental action

unless:

1. The auction contains at least seventy-five percent (75%) of the items or

lots to be offered pursuant to one (1) or more federal, state, or local

governmental actions in which the real or personal property is being

offered directly for the federal, state, or local governmental entity;

2. The items or lots were clearly not purchased or attained for the purpose

of resale at auction; and

3. The advertising clearly contains an explanation of the governmental

action, including identification of the governmental entity.

(b) If less than one hundred percent (100%) of the items or lots being offered at

the auction are from one (1) or more governmental actions, then the

advertising shall clearly indicate that the auction is "With Additions" or use

similar wording.

(c) This subsection shall not prohibit clear, nonmisleading advertising of the

inclusion of specific real or personal property being offered pursuant to a

federal, state, or local governmental action in an auction if the real or personal

property is offered directly for a federal, state, or local governmental entity

and was clearly not purchased or attained for the purpose of resale at auction.

(6) (a) An auction shall not be advertised as a "Liquidation Auction," "Surplus

Auction," "Inventory Reduction Auction," or "Going Out of Business

Auction" or use similar wording or any combination thereof unless:

1. The auction contains at least seventy-five percent (75%) of the items or

lots to be offered for one (1) or more liquidation, surplus, inventory

reduction, or going out of business situations in which the real or

personal property belongs to a company or other business entity and is

being offered as "out of stock"; and

2. The items or lots were clearly not purchased or attained for the purpose

of resale at auction.

(b) If less than one hundred percent (100%) of the items or lots being offered at

the auction are from one (1) or more liquidation, surplus, inventory reduction,

or going out of business situations, then the advertising shall clearly indicate

that the auction is "With Additions" or use similar wording.

(c) This subsection shall not prohibit clear, nonmisleading advertising of the

inclusion of specific real or personal property being offered for a liquidation,

surplus, inventory reduction, or going out of business situation, or similar

wording or any combination thereof, in an auction if the real or personal

property is being offered for a liquidation, surplus, inventory reduction, or

going out of business situation in which the real or personal property belongs

to a company or other business entity, is being offered as "out of stock," and

was clearly not purchased or attained for the purpose of resale at auction.

(7) (a) An auction shall not be advertised as an "Estate Auction," "Estate Settlement,"

or "To Settle the Estate of ... Auction" or use similar wording or any

combination thereof unless:

1. At least seventy-five percent (75%) of the items or lots in the auction are

being offered for one (1) or more estates in which the real or personal

property belongs to the estate of one (1) or more deceased persons and is

being offered by the direction and authority of the authorized executor or

administrator, or by court order, or by the direction and authority of one

(1) or more direct heirs; and

2. The items or lots were clearly not purchased or attained for the purpose

of resale at auction.

(b) If less than one hundred percent (100%) of the items or lots being offered at

the auction are from one (1) or more estates, then the advertising shall clearly

indicate that the auction is "With Additions" or use similar wording.

(c) This subsection shall not prohibit clear, nonmisleading advertising of the

inclusion of real or personal property offered for an estate in an auction if the

real or personal property is being offered for an estate as set forth in this

subsection.

(8) (a) An auction shall not be advertised as a "Living Estate Auction" or "To Settle

the Living Estate of ... Auction" or use similar wording or any combination

thereof unless:

1. At least seventy-five percent (75%) of the items or lots in the auction are

being offered for one (1) or more living estates in which the real or

personal property belongs to a household that is in transition due to a

life-changing situation, including but not limited to one (1) or more

members of the household moving into a retirement home, nursing

home, or assisted living home or combining the household with another;

and

2. The items or lots were clearly not purchased or attained for the purpose

of resale at auction.

(b) If less than one hundred percent (100%) of the items or lots being offered at

the auction are from one (1) or more living estates, then the advertising shall

clearly indicate that the auction is "With Additions" or use similar wording.

(c) This subsection shall not prohibit clear, nonmisleading advertising of the

inclusion of real or personal property being offered for a living estate in an

auction if the real or personal property is being offered for a living estate

pursuant to this subsection.