It’s important to remember that these sale prices are a guide only. Once
bidding is under way prices can quickly rise, so the eventual “hammer price”
may bear little relation to the original guide.

Some of these companies don’t publish their final sale price, so there are
concerns that these are “teaser” rates, designed to get people into sale
rooms and bidding on items they may know little about.

Nor is the final “hammer price” what you pay. On top of this there will be
commission and VAT – potentially bumping prices up by a further 25pc.

One company that is advertising heavily on Facebook at present is WLC
Auctions. Wayne Cooper, the director of the firm, said around 60pc of its
lots were bankrupt stock, while the rest were from other companies, such as
pawnbrokers and memorabilia dealers.

There have been numerous criticisms of the company online, in forums such as
MoneySavingExpert.com and WhatConsumer.co.uk.

Most complain that cheap electronic goods are few and far between – and the
“guide prices” given on fine wines, jewellery and antiques are “optimistic”
– so customers aren’t always getting the bargain they think they are.

In one case a woman complained after buying a set of lamps for £140, which had
a price tag of £795. When she later had them valued they were worth just
£200. Mr Cooper said that in cases such as this the customers were offered
full refunds. (There are numerous cases online where customers confirm they
have secured a refund.)

Mr Cooper said the firm did not employ its own valuers, so its lots don’t have
a guide price or a reserve price – all items are sold on the day. The prices
given on the firm’s Facebook pages are only what they expect them to sell
for. However, the firm does use external companies – such as Safeguard – to
certify items such as jewellery and watches.

Mr Cooper said the firm was completely separate from Coopers Auctions, which
was run by his father and was subject to a BBC Watchdog investigation.

WLC isn’t the only auction house running these “pop-up” sales. While it has
regular sales in six London hotels, other firms will run one-off auctions in
church halls and provincial hotels – sometimes on a “cash only” basis.

But whether you are buying at one of these flash sales, or from a more
established auction house, do you have any consumer protection? Or is it a
case of “buyer beware” once you step into the sale room?

Samantha Lilley is the director of valuation at Borro – an upmarket
pawnbrokers. She said the law did provide some protection for consumers, but
she said prospective buyers should always do their research first.

“Look at what you are buying, and where you are buying it from,” she advised.
“Get a clear idea of what similar items have sold for, both at auction, or
elsewhere, if applicable. Know what the maximum is you can afford to bid –
and stick to this.”

In most cases customers are protected by the 1979 Sale of Goods Act.

This stipulates that an item should be “as described”. So, for example, if you
bid on an item that is listed in the sale catalogue as a “silver teapot” you
have a right to a refund if it subsequently turns out to be pewter. This
legislation applies to goods whether they are new or second hand.

This legislation is of less use when it comes to “guide prices”, which are
subjective.

Many customers don’t realise that their contract is with the seller, not the
auction house itself. But the auction house is not obliged to give you any
details on the seller. However, it does have some responsibilities, such as
making no false statements about items.

A spokesman for Manchester Trading Standards pointed out that in certain
circumstances the Sale of Goods Act might not apply. In such cases, though,
the auction houses must make this clear to customers. And even here, if the
item has been falsely described, you may still be entitled to compensation.

He said his office had received a “rash of complaints” about auction houses a
couple of years ago, but there had been far fewer complaints recently. But
he said it paid to “deploy a bit of common sense” when buying at auction.

Safe buying at auction – read this first

• Are you dealing with a reputable company? How long has the
auction house been trading? Check whether it has its own sale room or head
office where you could apply for a refund.

• Buy on credit card. This may give you additional protection
under the Consumer Credit Act. Tread carefully if buying from a cash-only
outfit.

• Check the refund policy. These terms and conditions should be
clearly stated at the back of any sale catalogue. This should cover items
that have been wrongly identified or catalogued. Many established regional
or national auction houses offer extended guarantees of up to five years.
Don’t buy if you cannot find this information.

• Can you view lots in advance? Ms Lilley of Borro (see main
story) said most auction houses gave prospective buyers the opportunity to
view sale items. She added: “Make sure you read the catalogue carefully, and
also ask for an auction condition report.”

• Check commission rates. The TCs should also explain the
commission charges. Typically buyers pay commission in the region of 20pc,
plus VAT. However, if the item is being sold on behalf of a private seller,
the VAT is only payable on the commission charge itself; if it is a trade
sale then the VAT is on the total sale price. This should be clear before
the lot goes under the hammer.

• Does the auction house belong to a trade body? Ask whether the
auction house – and it valuers – are members of the Royal Institution of
Chartered Surveyors, the Society of Fine Art Auctioneers and Valuers, or the
National Association of Valuers and Auctioneers. If not, take any
“estimates” of value with a strong pinch of salt.

• Fakes or forgeries can be a big risk, particularly when dealing
with antiques and painting. Similarly beware of “phantom” designer goods,
designed to look and feel like famous brands. These are usually worth very
little.

The picture is further complicated for those buying via online auctions.
If you are buying from a private individual, they only have to ensure they
item is “as described”.

But some sales on auction sites aren’t auctions at all. If the item is “Buy It
Now” – and you are buying from a company or trader (someone who sells items
regularly) – then you also get additional protection under the Distance
Selling Regulations. This means you have the right to a cooling-off period
of seven days, and the trader should inform you of this. You can cancel your
order in writing, and the trader must return your money within 30 days.