Pennsylvania Law Forces eBay Auctioneers to Get a License
You know those people -- maybe even you -- who sell other people's stuff on eBay? Well, apparently you or they will need to get an auctioneer's license from now on, at least in Pennsyslvania. The law has actually been on the books for a while, but is garnering attention because it is only now being enforced. Two people who run online auctions for others are under investigation by the state government and face up to $1,000 in fines.
But some eBay auctioneers are speaking out. Pennsylvania-based Auction Inn, a small online eBay auction company, is speaking out against the law, though it is not one of the two cited by law enforcement. Auction Inn believes the law is unfair since eBay auctioneers don't perform the same function or duty as traditional auctioneers. Presumably, this means they don't have gavels or talk in sped-up-auction-selling-speak, since all they do is write nice descriptions, take pretty photos, and make sure the stuff gets to the buyer on time.
Getting an auctioneer's license can take six to eight months which would shut Auction Inn down for the better part of a year, essentially forcing the business to shutter.
State lawmakers are proposing bills to deal with the issue, one of which makes eBay sellers exempt from the auctioneer's law, but still requires them to register with the government.
You can already feel the garages, basements, and attics of Pennsylvania start to fill up with all the crap the won't get sold until this hubbub is sorted out.
What do you think? Is this law too much or do you think eBay auctioneers should have a license?
From WGAL News
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Reader Comments (Page 3 of 8)
Wabbit said 9:36AM on 11-23-2007
Ebay should have an auction house license in every state.. Plus, pay a auction tax on each item sold. They are running an international auction house. Any auctioneer must be licensed in your state. Surprisingly in most states if you have more than one or two yard sales a year you must get a license and pay sales tax. There are just not enough people to enforce the law. People that set up at Flea markets do the same. They are taxed upon the amount they sell.
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Tom said 9:36AM on 11-23-2007
Damned if you do, Damned if you don't. have different levels of licensing that way people don't have to pay big bucks or deal with hassle to auction 3-5 things around the house. it would make it a more trustable marketplace for sellers and buyers if people could lose their Ebay license if they keep f****** their customers (sellers who don't ship the order after receiving payment) It would discourage scammers and theives and make ebay a more trustworthy company
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Tom East said 9:39AM on 11-23-2007
You think they sell only their own stuff? They comb yard sales looking for something they can resale at huge profits. And not all of them are honest. I got taken by a b---- in Kingsport Tn and no recourse.
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Kate said 9:41AM on 11-23-2007
I had an eBay store for 4 years. Their fees got so high you couldn't afford to sell anything online. Then I had a customer who damaged their item after they received it, claiming it came from the factory that way (they finally admitted they lied). The customer gave us a negative rating because we refused to replace the product (they threatened us with the rating if we didn't send a new product immediately) which eBay did nothing to protect us. EBay does not protect the seller or buyer, it's a crappy company. We closed our store after that and we do not recommend eBay. After eBay raised their fees two years ago, they lost 7 thousand sellers. The only one making a profit on eBay these days, is eBay. By the way, eBay raised their fees in the US to compensate for the money they lost over seas.
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Wabbit said 9:47AM on 11-23-2007
Not that I would want to rain on any ones parade but I think all towns should require a permit to hold a garage sale. And over two a year should require a dealer permit. Has anyone looked at telephone poles in major intersections? Most are covered with nails and tape. If you took items to a flea market you would buy a license at that time to sell....why not if you held several yard sales a year.
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Butch said 9:50AM on 11-23-2007
why doesnt someone go after the money grubbing big oil company's and leave the guy alone trying to make a dollar on ebay. land of the free bull sh#t
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Al said 9:50AM on 11-23-2007
It sounds like something Virginia will try too.
They both are GREEDY Commonwealth States.
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LUCKY said 9:52AM on 11-23-2007
THUS,ANOTHER LAW TO TAKE SOMEONE ELSES MONEY!IT'S LEAGAL CRIME!
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Judy said 9:56AM on 11-23-2007
People who sell on E-bay should not be taxed for the privilege. The items they sell have already been taxed, & then there's E-bay's fees. How much money does the Government need to make on the backs of their poor citizens? I used to live in Pennsylvannia so I know what living there is like. High taxes, poor people! I was born & raised in Pa., but I am so glad I moved!!
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Wabbit said 10:05AM on 11-23-2007
The Federal tax Laws are that if you resell an item...even one you paid tax on, you are to pay sales tax again. If you don't want to do that get a business license and buy it tax free to start with and then resell.
You are either a seller or you are not... you must make a choice. If you sell on Ebay you are a seller, no different than a flea market seller or a store owner.
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Mick said 10:05AM on 11-23-2007
Its a matter of time, that governments in the local, state, federal level figure a way to tap into the mega money source. We are talking a billion dollar industry. I do think private sellers (garage sale sellers) should be hands off. I do believe the power sellers should be regulated, as this is a business for profit.
Any time money changes hands in a large way, cash starved governments are looking for tax dollars. Its the American way.
Ebay used to be a simple way to unload unwanted items, and supply stuff to people that have a use for the items, a way to reuse things that would have normaly been discarded and make a little change doing it. It has all changed, as the marketing people take over. It the same way with our local flee markets, once mom and pop, now commercial. It the American way.
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Mitch said 10:10AM on 11-23-2007
Typical American move. Charge people for something so they will need to increase their prices to others to make a decent profit. It would seem that the impact hasn't been totally considered.
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Michelle "Mrs. Auctioneer" said 10:13AM on 11-23-2007
Hello -- Have you all really read what the new law is all about????? Gossip is cheap. When PROFESSIONAL people/ businesses hold other peoples money they have to be bonded and have escrow accounts --- TO PROTECT THEIR CLIENTS MONEY. What protection is there for the computer illiterate community that wants to sell their stuff on Ebay and use the "drop off, we sell for you" businesses? The law is designed to target those companys that can open and close with a blink of an eye taking advantage of innocent people. The drop off centers are charging a fee for their services and are comparing themselves to the "auction world" and auctioneers. If you compare yourself there for you are.
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fightfraudonebay said 10:16AM on 11-23-2007
A great idea to fight fraud on ebay - make auctioners responsible by making them register and liscensed. Ebay won't police their own site - so time for GOV to take action by jumping in and doing something to fight the scammers... The writing is on the way Ebay - read it and take action or ignore it at your own peril.
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shane said 10:22AM on 11-23-2007
What do you mean ebay does not protect you. They will shut you down quickly if a complaint is registered and always pay by paypal if you do not receive your item they will make your life miserable. Not all buyers are honest if you dont send it delivery com. the threaten to leave - feedback to get a refund. shame on you lawmakers from pa. shame on you. we live in the land of the free my a**
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Mick said 10:25AM on 11-23-2007
I should add: Ebay is not different that any other company, they are in business to make money, not give it away. You can't blame them if they raise fee's to make profits, you would do the same as a business person.
If you want greed, then focus your anger on the oil companys, they are the ones that control our economy, our country. We as consumers are trapped as we need their products to survive. There use to be monoploy laws in this country, as competition was good, gone is that fact as is the hard earned dollars in your wallet.
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Leo said 10:32AM on 11-23-2007
Everyone's overreacting here...Penna's not saying that everyone who sells on eBay needs a license...only those who sell stuff for others. If you're selling your own stuff, you're fine.
If you are operating a business taking other people's stuff in on consignment and selling that on eBay (like many of these storefront sellers that have popped up in the past couple of years), then Penna is requiring you to get a license. It's the principle of acting as an interested third party--as the consignee, you have a financial interest in the final sale price, and are responsible for making sure that the consigner (the person who left the merchandise with you) gets the highest possible price for the merchandise.
It's a little bit different than selling your own merchandise on eBay, or purchasing merchandise outright for resale.
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MVP said 10:33AM on 11-23-2007
Another example of horse manure politicians kissing someone's butt because they get $ from them. These people are not auctioneers, and this law is not to protect the public, despite lies from the politicos to the contrary - it's to protect the special interests of the auctioneers lobby. If you are one of the 17% who thinks this is a good idea you are a fool.
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kat said 10:36AM on 11-23-2007
We own a small business and do trade shows. We STOPPED going to cities in PA because they are absolutely impossible to do business with. They made us fill out a 23 page corporate return for selling $800 worth of tools. Then they made us pay $200 even if we didn't do business....that practice has since stopped. They are the most agravating state govt to do business with in the whole US. They have a reputation!
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fightfraudonebay said 10:37AM on 11-23-2007
I think state law enforcement and attorney generals are getting tired of funding ebay policing. If ebay chooses to not police their own site and state's and federal law enforcement has to spend 100s of millions of dollars a year to combat ebay fraud, those GOVs have a right to recoup their expenses through whatever means they see fit. Not only do they have that right - they also have my blessing for their future success in fighting ebay fraud that ebay refuses to do anything about....Ebay is passing on its costs of fraud fighting and law enforcement onto state governments - those govs have the right to regulate ebay as much as they think necessary IMO.
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