Watch out for strict rules at online auctions

If you wish to start an online auction, consumer law continues to apply: it concerns a distance sale, with information obligations and, in principle, a 14-day cooling-off period. If you auction products from other entrepreneurs, the consumer can hold both your platform and the seller liable, and the general terms and conditions of that seller must also be correctly provided.

Inspired by platforms like VakantieVeilingen or Catawiki, more and more entrepreneurs want to sell via auctions. Various revenue models are possible—a fee per bid, a commission, or administrative costs. Attractive, but make sure you handle it legally correctly.

Two types of auction platform — and who is responsible

There are two ways to run an auction site:

• You auction your own products. Instead of fixed prices, you let buyers bid, for example to sell surplus stock at the best possible price. The full responsibility — for example in the event of delivery problems — then lies with you as the auction site.
• You allow other entrepreneurs to sell via your platform. They pay a commission or a fixed fee. In this case, the consumer can hold both the platform and the actual seller liable. You can make mutual agreements in the terms and conditions between the platform and the seller, but this does not change the consumer's choice of who to contact.

Provide the general terms and conditions correctly

If other entrepreneurs sell via your platform, it is not sufficient for only the platform to provide its general terms and conditions — the seller must do so as well. If this is not done in a timely manner or correctly, the consumer is not obliged to take that seller's terms and conditions into account.

Cooling-off period and duty to disclose at auctions

In the case of a public auction to a consumer, consumer law applies in full. This constitutes distance selling, with strict obligations:

• The platform must comply with the information obligations and — when selling on behalf of another — provide information on the identity of the selling merchant.
• In principle, the consumer is entitled to a 14-day cooling-off period, about which the platform must provide information. This period starts upon receipt of the product or, in the case of a service, at the moment the auction is won. For the seller, this means that a transaction can still fall through.

The law does provide for exceptions where no cooling-off period applies, for example for admission tickets to zoos and amusement parks or the rental of holiday accommodations — not coincidentally products you often see on auction sites.

Also pay attention to these points

In auctions, additional requirements may apply, such as (depending on the type of auction) a role for a notary who verifies that everything proceeds fairly — entailing extra costs and challenges. If third-party products are auctioned, the general terms and conditions must be suitable for all situations, especially if exceptions to the right of withdrawal apply.

Frequently Asked Questions

Does a cooling-off period apply to an online auction?

Yes, for sales to a consumer, a 14-day cooling-off period generally applies, because it concerns a distance sale. Statutory exceptions apply to certain products and services.

Who is liable: the platform or the seller?

If you auction your own products, you are responsible as the platform. If others sell via your platform, the consumer can hold both the platform and the seller liable.

Does every seller have to provide their own terms and conditions?

Yes. If an entrepreneur sells via your platform, that seller must also correctly provide their general terms and conditions; otherwise, they do not bind the consumer.

Setting up an auction platform legally sound

Do you want to start an auction platform or sell surplus stock via auctions? The legal experts at MKB Juristen draft suitable general terms and conditions and inform you about the rules and alternatives. View our expertise in contract law or contact us.