Scott Edberg is a Kentucky-based eBay seller who is concerned about a bill that passed the state House and Senate and is sitting on the Governor's desk waiting to be signed. He believes the legislation has the ability to impact online sellers like himself who list in an auction format by requiring them to have an auctioneer's license. Edberg is a licensed auctioneer in Indiana who resides and does business in Kentucky.
Edberg said the bill had contained an amendment specifically excluding Internet sellers, but that the amendment was dropped on Friday before passage of the bill. Edberg and another online seller, Ronda Carty, were featured last week on a local television program about the issue. The segment also featured an interview with a co-sponsor of the bill, Representative Danny Ford, in which he told TV station WHAS11 that the bill protects consumers. "I don't think E-Bay or anyone else interprets this law to have any effect on them negative whatsoever," he said.
Edberg remains concerned. He said he and Carty met with the Governor's lawyer on Monday who told them that dropping the amendment signified intent, and he believes that once the bill is signed into law, he and others selling in an auction format online could be targeted by the state Auctioneers Board. (AuctionBytes' calls to two legislators and the Kentucky Board of Auctioneers on Monday afternoon were not returned by press time.)
eBay has been aware of Kentucky House Bill 193, according to spokesperson Usher Lieberman. He said the way the bill is drafted, it is eBay's legal opinion that it would not apply to eBay sellers. It might apply to drop-off stores or Trading Assistants using auction or auctions in their business name. The Kentucky bill is intended to get at businesses that are positioning themselves as auction houses - legislators were concerned with potentially confusing customers, Lieberman said. A firm employed by eBay had spoken to staffers for key legislators about the bill, but eBay did not officially lobby on this legislation.
Last year, eBay imposed new rules on sellers participating in its Trading Assistant program, prohibiting them from using the term "auction" or "auctioneer" in their business names, signage and marketing materials unless they were licensed auctioneers. In the policy FAQs issued at the time, eBay stated that the new requirement was made "to protect Trading Assistant and Drop Off businesses from burdensome regulations."
Asked if eBay was aware of any other pending legislation around the country, Lieberman said Arkansas passed clarifying legislation this year that eBay believes does not apply to its sellers. Alabama is looking at possible legislation this year that is similar to Illinois, where an entity like eBay would be required to register, not individual sellers.
Lieberman said eBay invests heavily in tracking legislation around the country. "We have to look out for our sellers. Their success is tied to our success."
Update: AuctionBytes spoke to Representative Danny Ford, a co-sponsor of the legislation, on March 17, 2009. See the AuctionBytes blog for details.
