Want to stay current on e–commerce law? Sign up for Email Newsletter.
U.S. States Contemplate How To Regulate eBay Trading Assistants
eBay and related businesses are resisting attempts by some U.S. States to regulate the 'trading assistant' industry. Trading assistants are individuals and businesses who sell other people's items on eBay in exchange for a fee, which helps to expand eBay's customer base beyond those who are willing to hold an online auction themselves. Many offer drop-off services using retail storefronts. Certain States are considering whether such businesses should be governed by the same laws that apply to pawnbrokers, secondhand stores and auctioneers, citing the danger of them becoming conduits for stolen goods. The businesses argue that they are very different from pawnshops, which often pay cash for goods, in that they do not purchase items from the customer, but rather take the customer's personal information, facilitate the sale of goods, and send the sale proceeds (less commission) to the customer by cheque.
In Louisiana, the Auctioneers Licensing Board is also attempting to regulate trading on eBay by trading assistants. A person or business in Louisiana is considered to be in the auction business and has to have a license if it accepts goods on consignment to sell at an auction, is paid for the service, and does this more than once a year. The Board has issued subpoenas to a number of such individuals and businesses that it believes should be licensed. The license requirements include a $300 license fee and $10,000 surety bond.
For additional information, visit:
http://www.10e20webdesign.com/news
http://www.deridderdailynews.com/articles/2005/05/22/news/news7.txt