In addition, they have agreed not to falsely represent that artwork or any other investment offering is being sold at prices comparable to, or below, the prices at which consumers are currently able to liquidate the artwork, or that any artwork or investment is being sold at or near wholesale prices. They also would be barred from making any representations about investment risk, profit potential or market value without a reasonable basis in fact, and would be required to disclose in sales brochures and certain other written materials that tout the investment value or liquidity of art, that artwork is a high-risk investment. The Commission vote to accept the settlement was 5-0. It was filed in the U. S. District Court for the Southern District of Maryland, yesterday. This consent order is for settlement purposes only and does not constitute an admission by the defendant of a law violation.
Consent orders have the force of law when signed by the judge.