Artists Allege Sotheby’s, Christie’s and eBay Cheat on Royalties
In three federal class actions, Chuck Close and other artists accuse New York-based Sotheby’s and Christie’s, and Internet auctioneer eBay, of “willful and systematic violation” of their obligation to pay royalties on artworks sold in California or at auction by California residents.
The artists claim the auction houses and eBay violated the California Resale Royalties Act of 1977, which entitles visual artists or their estates to 5 percent of the proceeds from resale of their artwork in California or out of state by a California resident.