- Centuries of interstate commerce have lead to the growth in many sectors of a three-tiered distribution system: manufacturer or supplier; “middlemen” or distributors; and seller or retailer who deals directly with the customer.
- In many cases, these “middlemen” have obtained legal protection by pushing for state and federal laws that protect their profession, by either requiring their marketplace to use a three-tiered distribution system or by only allowing individuals who are regulated and licensed to provide the distribution system.
- Ecommerce uses technology to eliminate the need for the middleman - often connecting suppliers directly to retailers or the consumers themselves.
- But often, ecommerce in many sectors (ticket sales, auto sales, wine sales) runs into state and federal rules that require layers of regulation between the manufacturer and the consumer.
Position and Action
- eBay Inc. supports legislation which proposes to eliminate these artificial barriers to e-commerce.
We are pushing legislation in select states which would alleviate the cap on resale of tickets.
We are an active member of a national coalition fighting to knock down these barriers.
We have successfully fought against online auto resale restrictions in several states.