Auction houses will no longer be legally required to publicise guarantees on artworks sold in New York City when a repeal of business regulations goes ahead next month.
The requirement to state that a lot has been ‘guaranteed’ to sell is part of a series of laws known as Local Law 80 and 98 that are being scrapped on June 15 to ease restrictions on businesses and boost post-Covid trade.
Fully backed financial guarantees – as well as third-party guarantees, or irrevocable bids – have been part of the upper echelons of the auction business for decades. However, they have often been accused of blurring the lines between auctioneer and dealer while over-inflating market values.