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States Planning to Require License to Sell on EBay
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."
Those schools should be required to add "online auctions" as a class.
Not saying that I agree with this, but if you're going to force the online guys to learn the auctioneer rap, the auctioneers better learn how to navigate eBay and similar systems. If the pretense for passing this law is being fair and equitable, then it had better be.
Constitutionally Correct
It's amazing that we, the people, actually vote for people that are willing to do this. Note to politicians: Learn how to balance a budget like 99% of the country has to! Stop spending on crap and realize you cannot keep quietly taxing us. This is living free?
"If you are a dreamer, a wisher, a liar, A hope-er, a pray-er, a magic bean buyer
Ok, someone who puts something on ebay ISN'T running the auction. Ebay is. The person placing the good on ebay sets the high price and reserve - but how is that any different than if you hire an auctioneer?
So does everyone who wants to hire an auctioneer now need a license to auction? How non-sensical is that?
This is, quite literally, a stab at taxing the internet.
While I agree it is good for those who are doing this as a business (consignments) - it WILL move on to other things. Also, it will be hard to regulate.
It will also provide a new source of tax revenue, which is the main reason the gov't wants it.
It will cause some issues:
That $35 fee does not pay for the classes, which can be hundreds. And that surety bond - unless you are part of a company, you may have to front that money...that is a barrier to entry and not a lot of people can afford it. THe great thing about consignment on eBay is that you could get in for free.
I mod down so you can mod up. Your welcome.
Either way, I see it as a stupid idea. This is two things: a blatant attempt at getting more revenue for the state (though licensing fees), and (pure guess here) an attempt by auctioneers (probably a union of some sort) to get more money because their trade is threatened (in some ways) by eBay.
Why eBay? Why not require it for garage sales? Why not go after silent auctions that all sorts of places run (like many school districts and churches to raise funds). Usually there is a little good a law might do, or you can at least see some good intent behind it. This would do anything but prevent everyone in ND from selling things on eBay.
If you want to protect people from fraud, go after the NDers that are actually perpetrating fraud on others through eBay. Come up with a way to become a "registered eBayer" in the state so people can guaranty that you can be held accountable if you rip people off (but make it voluntary, and free or nearly so ($5) with no classes our anything like that).
Comment forecast: Bits of genius surrounded by a sea of mediocrity.
> It will also provide a new source of tax revenue, which is the main reason the gov't wants it.
Close, but not quite.
> That $35 fee does not pay for the classes, which can be hundreds. And that surety bond - unless you are part of a company, you may have to front that money...that is a barrier to entry and not a lot of people can afford it. THe great thing about consignment on eBay is that you could get in for free.
Now you've got it. The "great thing" is only "great" to people like the buyers of products on eBay (who want more goods to purchase from a wider array of sellers) and to people who want to get into the business without having to pony up a few grand of protection money (oops, "to take classes on how to talk fast!") to line the pockets of people who are already well established.
In a free market, anyone can enter. If you give enough money to your politicians, however, you can have him erect artificial barriers to your competition, turning a formerly free market into a cartel, or guild. A capitalist doesn't fear competition -- but sadly, owning a small business doesn't turn you into a capitalist any more than going into a garage makes you a car.
Are you talking out of your ass?
Especially if this is a state by state law, it will become a patchwork of licenses here and there, unenforceable and the seller's will just relocate their "location" on ebay to a friendly state. Like a scammers do with Utah or Florida. Or Washington D.C.:-)
I actually did selling on ebay, as well as buying where I got burned - so I looked into it.
Most of the fraud done on ebay are by low volume sellers who build up their feedback to somewhere in the double-digits and then pull either a high-priced scam, or probably more likely a dump a bunch of lots (medium priced, say computers for a low price) and never deliver.
Common sense is the best defense in this case, buying from someone that has an internet presence besides ebay (like a website) and that has a high feedback (over 200) that won't likely jeopardize it.
If this starts passing left and right, it will kill small business, or they'll move from ebay (I hate ebay, I don't care if they lose money) into their own website and just sell the stuff for a fixed price. In fact, they can do that now on ebay too.
Nowadays, when government usually do something (and other local governments want to be fast on the heels to follow), it's not for the good of the people, it's about control and increasing the revenue stream. I wonder if this is the first step toward greater taxes applied to internet selling, since they'll get the consignors listed on paper.....
Is there currently a problem with people who are consigning goods on ebay? If there is, is this any better than prosecuting the problem individuals? Just what real protection does it provide?
The government should stay out of everything as much as it possibly can. Almost every time the government gets involved in something unnecessarily, it is simply because someone sees an opportunity for more graft, the rest of the time it's because they are acting like overprotective parents.
"Prefiero morir de pie que vivir siempre arrodillado!"
What's particularly irksome is that this represents triple-taxing of the transaction. eBay consignment shops need a POP because people are more comfortable with that, and shipping an unsold item to sell it and then ship it again is just too expensive. So the business is paying taxes in the state in which it is incorporated. And possibly in all states in which its shops operate (I'm not familiar with the tax situation there). And certainly the individuals who eventually receive the shops' profits are taxed on income. The double-taxation of corporate income is reasonable because the corporate tax rate is low and incorporation provides concrete advantages which it is reasonable to pay for. I really don't see how this third layer of taxation is anything but an attempt by the states to suck a little more money out of the population without providing anything in exchange.
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If I want to hire someone to put my stuff up on ebay, I'll decide whether I want them to have a license or certification or not. Please don't try to represent me by deciding this on my behalf.
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