Secondhand blues for eBay consignment sellers

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out for the consumer, the general public, to make sure that nobody gets ripped off. This allows the state to regulate and monitor and register who's holding someone else's money for them."

Orr's school, which is approved by the Tennessee government, already reports higher enrollment because of the state's crackdown on online consignment sellers. "Other states are following suit," Orr said. "I think we're going to see more of it."

In addition, many states require licensed auctioneers to undergo continuing education at government-approved schools. Alabama mandates six hours of classes every two years.

Studying the "Auctioneer's Chant"
Some eBay sellers who have gone through auction training programs complain the curricula have no relation to the process of selling items on the Internet.

The Mendenhall School of Auctioneering in North Carolina spends 40 hours tutoring students in the fast-speaking patois of auctioneers, described as "Drill--Chant, rhythm, speed, clarity." Thirteen hours are allocated to tobacco and livestock auctions. The Texas Auction Academy has a similar curriculum that devotes 18 hours to the "Auctioneer's Chant."

Auctioneer schools tend to drill their students for hours on breathing techniques. The Western College of Auctioneering in Billings, Mont., spends four hours on "voice control and breathing," and the Walton School of Auctioneering in Medina, Ohio, has a similar curriculum. Most schools, like Walton, include instruction on firearm sales--a category flatly prohibited on eBay.

"The test wasn't designed for online auctions," said one licensed eBay seller who asked not to be identified. "It showed us how to identify long-barrel versus short-barrel handguns, how to identify Grade A cattle, and what to do when drunk people show up at your auctions. It wasn't really relevant."

Ohio recently worried some eBay sellers when it enacted a law expanding the definition of auction to encompass the Internet and "electronic transmissions." Anyone who "offers for the purchase of real or personal property" is considered to be an auctioneer who must be licensed or run the risk of criminal prosecution. The legislation takes effect in May.

Public outcry led state Sen. Larry Mumper, the Republican sponsor of the original bill, to introduce a follow-up measure that would exempt people selling through online auctions. It explicitly exempts "a person who sells real or personal property by means of the Internet" but is awaiting a vote in the legislature.

Efforts to expand the definition of auctioneer or pawnbroker are pending in Texas, Florida, Wisconsin and Maine, eBay said.

[Sentinel]

Once again...

It's interesting that the article doesn't seem to mention what the costs are for this "training and licensing" that eBay resellers are being required. How hard can it be to set up a few auctions on eBay? I've never sold anything on eBay, but I know people who have, people don't even know much about computers. Oh yeah, auction university here we come!

[DaClyde]

strictly about consignment, not auction in general

I was concerned when I started reading the article that the state governments were just looking for a way to regulate auctions in general, but the article is strictly abotu people who auction off items on the behalf of others, the regulation wouldn't apply to you run of the mill online e-tailer who uses an auction to peddle their wares.

Even so, I don't see why anyone should need any more than a standard business license to sell stuff for someone else. All you're doing is providing a service to them. I don't need a computer repair license to run a computer repair business. Maybe it's jsut because services aren't taxed in so many places, so this is just another case of gov't sticking their hand in the wallets of the citizens.

[Earl Benser]

If these 'legal eagles' have it right....

... then every newspaper with a want ad section must also
comply.

[ScullyB]

Tennessee Trading Assistant

While I think the law stinks, this article is inaccurate.

First off, you have to take a 30 hour course, at a cost of approximately $300. You're not going to "bid calling" classes. I don't know why the Snappy Bids founder said she had to hire a government approved auctioneer, that's plain false. She and I have to deal with the same inspector, the state only has one.

The state inspector sends a notice to every trading assistant in TN. It states, If you receive items for consignment and the auction originated in this state and the receiver of said goods receives and distributes the proceeds, you need a gallery license. This is not the same as an auctioneers license. No apprenticing or bid-calling, etc.. This is a big difference from the classifieds section.

[declan00]

What Tennessee requires

You may wish to take a look at the actual Tennessee government website. It <news:link url="http://www.state.tn.us/commerce/boards/auction/req_license.html">says</news:link> that a gallery-class license holder "must employ a Tennessee licensed auctioneer."

Perhaps the state is letting you slide for now? If I were you, I wouldn't bet my business model on that oversight continuing.

[j3st3r]

Secondhand Blues... or Prison Blues?

In reading the article I was left with my thoughts concentrated not on the legimate eBay particpants but on a more criminal application of the service.

I know that here in Australia a chain of pawn broker like outlets has been forced to comply with heavier requirements due to a proliferation of stolen goods on their shelves.

Imagine the case where "Big Bubba" burgles a block of flats and finds himself with 20 TVs, 15 DVD players and 3 cases of CDs. If he has someone sell his booty on eBay what details are they required to hold regarding "Big Bubba's" identity??? I'm sure someone will correct me but wouldnt this person be a fence?

Perhaps this is the situation that the different state regulators are looking at getting on top of, rather than simply slapping costs, fees and controls on people out to make a quid.