Auctioneering Regulations |
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eBay opposes attempts to extend state auction licensing requirements to either eBay sellers or eBay itself.
eBay Point-of-View:
While eBay transactions are commonly referred to as "auctions," there are several fundamental differences between traditional regulated auctions and the transactions that occur over the eBay platform.
Since eBay and eBay sellers perform functions distinct and non-equivalent to those of traditional auctioneers, they should not be subject to the same regulation and licensing requirements.
There is no evidence that imposing new regulations and licensing requirements upon eBay or eBay sellers would provide any additional consumer protection. Instead, any new regulations would impose unneeded costs and burdens upon buyers and sellers alike.
Please take action as an eBay member:
We urge you to speak up by opposing legislation to regulate eBay or eBay sellers. Please write to your legislator and express your views. To learn more about how to find and contact your legislator, please click here.
Impact:
Extending auction-licensing requirements to eBay or eBay sellers would endanger the livelihoods of the more than 430,000 individuals in the US who earn a substantial portion or all of their incomes selling on eBay.
Sellers would be forced to waste hours and hours of their valuable time and hundreds (or potentially thousands) of dollars for unneeded certifications and training classes to become licensed auctioneers and for ongoing compliance requirements.
Key issues:
Online Marketplaces and the business transacted over these platforms are distinct from traditional auctions that may be subject to local and state regulation. Legally and practically, they are not equivalent for several reasons including the structure of the transactions; traditional auctioneers must keep the an auction open as long as there are willing bidders while on eBay there is always an automated predetermined end time no matter how many people may still want to bid. In addition, traditional auctions include mandatory escrow requirements to protect the underlying owner of the item up for auction. Such requirements make no sense on eBay since the eBay seller receives funds directly from the buyer.
Background:
In February 2005, Ohio enacted a law that extends licensing requirements to include traditional auctions conducted online or over the phone. eBay does not believe that its sellers are covered by the new legislation, the bill has caused confusion amongst sellers and regulators alike.
In states like Tennessee, some regulators are attempting to extend existing auctioneer licensing requirements to eBay sellers.
Illinois classifies eBay and other online marketplaces as Internet Auction Listing Services with insignificant registration requirements to distinguish them from traditional auctioneers.
Nearly one-third of eBay's business comes from fixed price listings, which are outside of the scope of auction regulations.
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