States Planning to Require License to Sell on EBay 274
RobMowery writes "CNN reports that North Dakota and other state governments are trying to pass laws to require people who are selling for others on Ebay to purchase an auctioneer license, attend classes (for a fee) and become bonded." From the article: "North Dakota's Public Service Commission is exploring whether people like Nichols, who runs a small consignment store in Crosby, must obtain auctioneer licenses before they can legally use eBay to sell merchandise for others. Regulators in other states are also eyeing similar restrictions or preconditions, moves prompted by the growing popularity of online auctions. To get a North Dakota auctioneer's license, applicants must pay a $35 fee, obtain a $5,000 surety bond and undergo training at one of eight approved auction schools, where the curriculum includes talking really fast ... Commissioner Kevin Cramer said he does not believe the law applies to people who sell their own goods over eBay, but it could cover those who sell property consigned by others for a fee."
Key word is Consignment (Score:3, Interesting)
It provides protections to the people who give their goods over for sale, as well as provides a link to the individual that is selling, and a person can prove that they are a bonded seller as well.
Obviously the classes would have to change slightly for internet retailers, mentioning talking fast is sort of moot if this were to go ahead.
Given ebay's efforts... (Score:1, Interesting)
Considering the number of people who have been ripped off via Ebay, and the fact that Ebay controls not just the marketplace, but the most popular method of payment (PayPal), and that if you get ripped off Ebay's of no help at all, this is not a bad idea at all. I'd love to see state license numbers when I buy from people.
Something I'd like Congress to consider... (Score:3, Interesting)
Taxing and Regulating EBay or other auction businesses like it is absolutely unacceptable, not just to the potential seller but for the entire business of auctioning.
You don't do it to live, in-person auctions, you don't do it online. It's just that simple. Get your taxes somewhere else, like oh the real businesses in your own damn states that you're giving tax breaks to. They don't need it and they don't deserve them. Don't make Auctioneers suffer for it.
You're arguing that there are no free markets (Score:2, Interesting)
In the real world, all markets have barriers to entry, chief of which is capital. The so called barrier of entry you're referring to is, practically speaking, no more a barrier to entry than being required to pony up an equivalent amount of cash to start a vending route or to beer making equipment, or any other business that requires investment.
`owning a small business doesn't turn you into a capitalist '
That much is correct. Capitalism is a theory of production, not a theory of retail or professional services. A business owner is only a capitalist inasmuch as he or she owns the means of production. Many businesses don't produce anything in the sense of the word used by economists.
But let's be objective about this. Show me a single market of concrete goods for which all the assumptions of perfect competition hold. Once you are able to do that, then we talk as to whether a license to sell things on consignment is anymore of an artifical barrier of entry than any of the other barriers of entry (such as a lack of money) to most markets.
That's it, I'm using fixed-pricing (Score:2, Interesting)
If my "buy it now" price is the same as my reserve, then it's not an auction and not subject to the law.
Consignment salesmen may find it easier to just tell their customers "Here are recent ebay prices on that item. Pick a price and I'll sell it on e-bay for that fixed price" than to mess with licenses etc.
Re:Interstate Commerce (Score:4, Interesting)
No, it's not regulating interstate commerce. The law is regulating in-state businesses. Keep in mind, this is for people who operate business selling OTHER PEOPLE'S things on consignment. This isn't for people operating a business selling stuff they've bought from wholesalers on e-bay or even individuals selling their stuff on e-bay.
In fact, it's not a particularly onerous thing to ask. Having recently had to get insured to operate my own business as a consultant (a requirement of the company I work for). Getting bonded and licensed isn't very costly. And in the end, the idea is to protect the consumer which isn't a bad thing.
and another thing.... (Score:2, Interesting)
Re:Interstate Commerce (Score:3, Interesting)
There are a lot of good reasons why this law is a bad idea ... but this is not one of them. The examples you gave are private individuals (or groups of private individuals) engaging in commerce directly. Even the school or church auctions are typically run by volunteers or people working for the organization that stands to receive the money.
This proposed bill has nothing to do with situations like that, even if you extrapolate that to eBay. The proposed bill only goes after those people that are posting items to eBay on consignment for others. In other words, those businesses (and that's what it is even if the "business" is just one person working out of her basement) that profit from selling other people's items.
If we wanted to create an analogy to garage sales or church auctions, we would have to introduce some paid third party. Say my church wants to hold an auction to raise some funds and solicits donations from church members. Rather than run the auction ourselves, though, we hire the good folks at ChristianAuctions.com to handle all the details in exchange for 5% of the profits. In this analogy, the ChristianAuctions.com folks would be the ones taxed by the proposed bill and not the church or the people that donated the items.
To summarize: Bill = Bad, but not for the above reasons.
Pawn Brokers are regulated. (Score:3, Interesting)
If you've ever bought a used CD in CA. you've purchased from someone who was licensed and bonded (assuming their papers were in order, sig heil!). Having worked at a record shop that did a booming business in legitimate used CDs and vinyl I would say the regulations were not intrusive and worked to assure out customers that anything they bought from us came with a clear title.
Remember, title on stolen goods cannot be transferred by a third party. If you buy a big ticket item on eBay and it turns out to be stolen, the police will confiscate it from you without any reparation. You are free to file a civil suit against the seller, but good luck getting a payout from Joe Schmoe in NY when you're halfway across the continent. Admittedly, the proposed classes would need to have their contents updated but regulating the trade in potentially stolen goods is not a bad thing.
Positive spin? (Score:3, Interesting)
All the states are trying to do is to suck more money from the taxpayers.
However, there is a shiny side this this horrible idea: by being certified by the state, they can list said credentials on eBay (and various other auction sites.) Then, unless their account gets hijacked, you can be certain that you will be able to have no false listings or other fraud.
Despite this shiny side, there is no real good reason to put things like this in place. I encourage everyone in the affected states to write to their representatives/governer/etc. and express your displeasure with this. Don't forget to mention the unconstitutionality of it!