Article translated by Amritee Mahabir

THE CONSEIL DES VENTES VOLONTAIRE ATTACKS EBAY FOR DISRESPECTING RULES
In France, a very clear rule is enforced on auctions, defined by the law of 10th July 2000 which, amongst other things, subjects all auction houses to submit to the disposition of a legislative organisation, the Conseil des ventes volontaires (CVV), which imposes the respect for clear and responsible rules by workers. According to French legislation all auction houses must be approved by CVV and subject to federal which understand the need to supply a clear and stringent warrantee report. The French report is based upon clear, responsible rules of loyal competitors and consumer protection; the aim of these laws is to help prevent and fight fiscal, evasion, recycling and illegal trafficking of art objects. eBay, a world auction house giant, has by now, operated for years in France so much so that the country has become its fourth world market, with 10 million registered users. Administration declares that eBay’s activity qualifies it as an auction house, and that it should therefore follow the rules. The company holds that it is simply an intermediary between supply and demand ignoring the enforced rules. A lot of eBay’s clients have turned to advice following an unsatisfying acquisition but the CVV found it was impossible to take action. In June 2007, the CVV nominated an official judiciary that could intervene in case of future legal arguments. Three months later eBay was warned that legal actions were taken into consideration, but didn’t obtain a reply and in the end decided to summon the company. CVV’s protest looks at different aspects. The law demands transparency and legality other than the agreement between buyer and seller. According to the Council, eBay intervenes whether in favour of sellers (assuring respect of reserve price) or buyers (accepting commission) and by sending information via mail to both parties. Also, fine arts receive particular treatment in that they are different to any other consumer goods, and their sale in auction should be subject by law to supervision by the Council. According to the president Christian Giacomotto, problems arise regarding stolen or false subjects, for which eBay holds no responsibility, restricting themselves to removing them from the site once the recommendation is received. And last but not least, the topic of the distortion of competition must be confronted, given that the company competes with auction houses which, independent of whether they operate on the traditional market or online should submit to the federal rules of CVV.
In spite of the clamour, the action could resolve itself alone; a decision won’t be made till April (probably later) and in reality before 2008, the European directive on services that will win the day on national legislation will be approved in France. The action however represents an important means towards attracting attention to the authorities on the issue. According to the Council, the services directive doesn’t seem to reconsider the debate about the particular status, reserved to long distant sales. The right to withdraw the contract is one of the main points of the directive. It’s application to auction sales through the internet could be a major problem, which the council opposes all the more after the European union deemed it worthy of the possibility of extending the services legislation to traditional auction sales. By the vision that is emerging from CVV’s declarations, from the point of view of creating a unified market in the services sector too, a law founded on principles of market transparency, of responsibility and protection of competitors, as well as protection of ultimate customers seems necessary to put an end to such uncertainties.
In Italy meanwhile, the question doesn’t seem to be heard of. It can be revealed that Italians use the internet less with respect to other European countries. Despite this, the directive will have repercussions even for our auction houses. The online sales sector is always receiving a lot of attention and its growth represents a natural evolution of the market that in any case cannot be stopped and the Italian auction houses could suddenly find themselves competing with international giants.