Online Auctions and Social Media "Auctions"
Do you need a license to run online auctions in Georgia? Do you need a license to run an auction on social media?
Online auctions are big business these days. It's no wonder. The potential for profit is off the charts! Platforms like AuctionNinja.com or Proxibid.com are large marketplaces for online auctions and they are legitimate online spaces to buy and sell. But what about social media auctions? We have all seen the "auctions" on Facebook and other social media platforms, but are they really auctions? Furthermore, do the people holding these "auctions" need to be licensed in the State of Georgia?
Let's look at the definition of "Auction." According to Merriam-Webster.com, "auction" as a noun means "a sale of property to the highest bidder." As a verb, it means "to sell at auction." Based on definition alone, any time property is sold to highest bidder, you have an auction. So, in short, any online event or social media post that generates competing offers or bids from individuals is an auction.
What does this mean for people running online auctions, whether from a storefront or on social media?
According to the Georgia Auctioneers Commission, "If you perform any of the acts of an auctioneer or engage in the business of auctioneering in Georgia (for example, if you have an auction storefront in Georgia, if you take consignments for auction in Georgia, if you write a contract to sell goods at auction in Georgia, if you receive funds following an auction on behalf of the seller or pay a seller in Georgia, and/or if there is a physical presence of personal property offered to be auctioned in Georgia), you must be licensed as an auctioneer in Georgia and/or the company must be registered as an auction company in Georgia. Please note that there is no exemption in Georgia law for online auctions." (Click here if you would like to see the source.)
Therefore, the individual or organization holding these types of events in the state of Georgia must be licensed. Many auctioneers hold live events on social media and have a license to conduct auctions in Georgia. However, many do not.
If you buy from these auctions, please make sure that the person hosting them is licensed in order to better protect yourself as a buyer. Each licensed auctioneer or auction company in the state of Georgia has a unique license number, and a good auctioneer will happily share it. (The great ones remember to put it on ALL of their promotional materials)
If you sell in these online auctions, make sure that the individual with whom you have a contract to sell is licensed. (What? No contract? That's a dead give away that they are not licensed!)
If you are running these auctions and are reading this, please contact us today to find out how to get started. Here's a previous post that walks you through the process.
Online auctions can be VERY profitable! Billions of dollars are spent online every year. And online auctions are taking part, just like other ecommerce stores. Don't let licensing prevent you from you holding online auctions or building your own online auction platform.
We believe that auctions are the best way to sell anything and everything thing. That's why after 20 years as auctioneers, we started Southeastern Academy of Auctioneering. We offer the Pre-Licensing Course for Georgia Auctioneers. Two weeks or 5 weekends is all it takes to complete the course and to be able to apply for your license.
Give us a call today at 229-212-2036!
Sources:
https://www.merriam-webster.com/dictionary/auction?utm_campaign=sd&utm_medium=serp&utm_source=jsonld
https://sos.ga.gov/page/georgia-auctioneers-commission-faq
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