The first ever code of ethics for the US Thoroughbred auction industry was introduced yesterday (Dec. 16) at a press conference at Keeneland.

The Code includes the following provisions:

- Veterinary procedures deemed to "improve the conformation of horses and thus enhance their opportunity to remain sound" are acceptable but must be disclosed. This includes invasive joint surgeries and other surgeries "designed to affect permanent" conformation changes, such as transphyeal bridges and periosteal transsections, manipulations, and elevations.

- Veterinary practices prohibited and deemed unacceptable are "temporary alterations" which may mask a horse's conformation, such as shock wave therapy and acupuncture and/or electro-stimulation with the intent to alter laryngeal function. These practices are not permissible "after a horse has arrived at the sale grounds."

- The injection of an internal blister or any other means of temporarily altering conformation is "prohibited any time, regardless of the animal's location, within 90 days of sale." If proof is provided within 14 days of a sale that such a practice has happened, the code considers it "to be just cause for the buyer to turn back the horse and expect reimbursement of the sale price."

- The code mentions that an appended form will be provided by sale companies to consignors to provide information on performed procedures on sale horses, and consignors are "asked" to include the information in repositories. The form is voluntary for foals of 2004 but will be mandatory for foals of 2005 and later.

- The code asks veterinarians to sign a dual agency agreement that reads: "I agree to fully disclose my ownership in any horse that I am asked to examine or render an opinion on, to the client or his agent for whom I am employed."

- The "supplying of ownership information is not held to be a requirement." Thus who owns or buys a horse will remain as clouded as it has been in the past. It does require disclosure of ownership interest in a horse held by a sale company official. A change of ownership in a horse once it reaches the sale grounds "must" be announced from the auction stand. However, this is only if the sale company is informed of the ownership change.

- The code suggests a written agreement be made between an agent and buyer, but does not require such a document. On the subject of dual agency, the code states: "dual agency (without disclosure to all parties) is inherently fraudulent. No agent/trainer should ask for a commission from a consignor, nor should a consignor pay a commission." However, like the entire code, there is no penalty for not adhering to the dual agency question.

Details from article written by Dan Liebman and Deirdre B. Biles The Bloodhorse.com

For a full text of the Code click here

Athlone & Associates are currently completing a major research article on this subject. We expect to publish it in the next few weeks.