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Julia Wilkinson AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

Julia Wilkinson is Editor of the AuctionBytes Blog and is author of the "eBay Price Guide," "eBay Top 100 Simplified Tips and Tricks," "My Life at AOL" and numerous ebooks about selling online. You can also find her writing on Yard Salers.
Thu Oct 20 2011 17:56:20

Louisiana Passes Law Banning Cash for Sales of Used Goods

By: Ina Steiner
Sponsored Link
It looks like the good state of Louisiana is borrowing a page out of eBay's policy handbook. Legislators there passed a bill banning the use of cash for the sale of second-hand goods. And while the bill ostensibly targets dealers, the law is so broad it could affect almost anyone.

Louisiana HB 195 was signed into law by the governor on July 1, 2011, and went into effect on August 15th. It imposes new requirements on secondhand dealers, but excludes pawn shops and non-profit entities.

The law uses a broad definition of secondhand dealer: "Anyone, other than a nonprofit entity, who buys, sells, trades in, or otherwise acquires or disposes of junk or used or secondhand property more frequently than once per month from any other person, other than a nonprofit entity, shall be deemed as being engaged in the business of a secondhand dealer."

As Louisiana lawyer Thad D. Ackel, Jr. Esq. wrote in a blog post about the issue, that could encompass everyone, from local flea market vendors and buyers to a housewife purchasing goods on eBay or Craigslist, to a group of guys trading baseball cards.

"Lawmakers in Louisiana have effectively banned its citizens from freely using United States legal tender," he wrote.

Thad told us he's been receiving a lot of attention from people all over the country who've read about the law on his blog. Indeed, readers have been forwarding links to blogs and news stories about the legislation.

Thad said the new regulations provide law enforcement with the ability to potentially identify criminals, but that the intent could be accomplished in a less intrusive manner.

The bill is reminiscent of a legislative movement we saw a number of years ago. In 2005, as eBay drop-off stores were popping up around the country, pawn shops and auctioneers supported legislation to try and impose the same restrictions on drop-off stores as they were required to follow, and many law enforcement agencies also supported such measures.

By 2007, the movement to regulate the sale of secondhand goods was still going strong, and Kathy Greer, Senior Editor of Unravel the Gavel newspaper, tackled this issue for AuctionBytes in 2007 and compiled a chart, "eBay Drop-off Store: U.S. State Licensing Issues." (Note that we do not update this chart - it's an interesting snapshot, but do not rely on it to make business decisions.)

While the record keeping may be burdensome, what secondhand dealers will be most concerned about judging by how such legislation impacted eBay consignment sellers in the past is the effect on customer behavior.

Will parents selling used kids clothes at a secondhand store agree to provide their driver's license number and license plate number for every transaction, knowing it will be sent electronically to local law enforcement agencies - and not even get the satisfaction of cash in hand when they walk out of the store?

Thad said he's worried about the unintended consequences of the new law and takes issue with the requirement that business owners must electronically hand over their customer lists each day. That's a proprietary business asset, he said - the value of client information is proven, as Barnes & Noble acquisition of Borders' customer list for $12 - $14 million demonstrates.

Thad said his clients have been approached by law enforcement who've notified them about the new requirements, but has not heard of any cases in which law enforcement have approached individuals.




Comments (38) | Permalink
Readers Comments

Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
This user has validated their user name. by: Anonymous Annie
       
Thu Oct 20 20:08:08 2011
Destined to join the hundreds of other obscure and ABSURD laws that find their way into the ''Odd & Unusual Trivia'' column in the back of the newspaper.

-- In North Dakota, it is illegal to walk your duck on the sidewalk.

-- In Wyoming, there is a $5 fine for wearing a red shirt on Sundays.

etc, etc, etc.
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: summer in the city
       
Thu Oct 20 20:39:27 2011

''Thad said the new regulations provide law enforcement with the ability to potentially identify criminals''

Baloney. The state of Louisiana is after sales tax, and this is part of the setup.


Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: WOODJUNGLE! on Ebay
       
Thu Oct 20 22:15:46 2011
101% unconstitutional.  Forbidding the use of U.S. currency is illegal.  Read it on any denomination paper note.
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: Fed-up This user has validated their user name.
       
Thu Oct 20 23:31:06 2011

@Anonymous Annie

Wow, I was in Wyoming last Sunday and wore a Red Blouse, does that count? LOL

You are so Rite. ''Odd & Unusual Trivia''

Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: Et tu, Brute!
       
Fri Oct 21 00:00:56 2011
Don't kid yourself that this will slip into obscurity as have other weird and unusual laws.

In 2008 the CPSIA law was blitzed through and caused massive headaches not only putting many toy manufacturers out of business, but from handmade to you can't give your child the quilt Granny made him until it's been tested and approved.

Of course, a lot DOES get ingnored.  But Matel circumvented that rule by having all there testing sites in China.  
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: another side of the coin
       
Fri Oct 21 01:32:41 2011
"Of course, a lot DOES get ignored.  But Mattel circumvented that rule by having all their testing sites in China."

You mean it passed the wolf guarding the hen house test?  
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
This user has validated their user name. by: Leafgreen
       
Fri Oct 21 01:44:57 2011
They don't call it ''Loosiana'' for nuttin. Loser conservative Repub idiots.
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: Golden Delight Honey, LLC
       Web Site
Fri Oct 21 02:13:13 2011
What a bunch of idiots who call themselves our representatives. How are they going to enforce their stupid law that won't work?  
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: LOL
       
Fri Oct 21 02:24:32 2011
I find it ironic that they claim it is to track potentially stolen goods. But pawn shops are exempt. Because, as you know, a pawn shop never has stolen goods...
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: Moonwishes
       Web Site
Fri Oct 21 04:35:01 2011
How in the world do they expect to inforce such a law? Sounds like they just outlawed yard sales also. Since when is it illegal to use government issuesed currency for all debts public and private? Dumb nuts.
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: Mr. Thomas Anthony Jones, SR
       
Fri Oct 21 06:14:19 2011
The Governor of Louisiana is a Fool. Did this idiot read the Law before he signed. Why did he not Veto such idiotic and unncessary and intrusive laws. If he cannot do his job, inpreach him. He is as stupid as his good buddy Rick 'Rockhead' Perry from Texas. Fire the Governor now!!!!! He is a disgrace to the country.
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: GottaLoveHuey
       
Fri Oct 21 06:20:09 2011
Why would any elected official want mad Cajuns and a drop in tourism? If identify criminals is all they need just ask them if they sell on ebay.
to quote legendary Louisiana Governor Huey P. Long ''I used to get things done by saying please. Now I dynamite 'em out of my path.''
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: derekcrane
       Web Site
Fri Oct 21 08:02:02 2011
Jindal signing this bill will be like Romney's problem with his Health Care scheme.  Should he seek higher office of any kind he will never receive the support of the Republican base.  Big mistake.
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: OhForPetesSake
       
Fri Oct 21 08:12:44 2011
I hear the sucking sound of all those jobs going to mexico.
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: Rich
       
Fri Oct 21 09:35:43 2011
This law is outrageous.  It cuts right at the heart of freedom and liberty.  It is not about security.  It's about more government control and taxation enforcement.  In the name of security Americans are losing freedom and liberty faster than ever.  If someone wants to buy a few dollars of some used items; it's completely wrong and unconstitutional to not allow cash to be used.  I'd be certain this law will be challenged.  If it is not oerturned, America will be another step closer to being a complete police state.  This law has to be strongly challenged--it's complete crap--
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: johngermaine
       
Fri Oct 21 10:27:07 2011
Sounds like they are hard up for tax dollars and want to be sure they get all they are entitled to. What a nightmare they have created!!
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: Richard
       
Fri Oct 21 10:45:08 2011
This is a shame to see our country resort to such measures. The buying and selling of used merchandise is personal at times and is big business for Flea Markets and open markets accross America. First its one state then it will be 2 and many. The American dream is slowly eroading... big government is now the business and is why next year cannot come quick enough to rid ourselves from the people that have weakened this nation. The Law makers here are looking to control something that they should stay out of, this is the last frontier people have to start small and then work there way to bigger and bigger sales and then establish a business that will keep. The only way to go is with low rent open markets and in some cases selling used merchandise. This incubator is nice for someone starting small and then to ultimatly open a store front and pay income tax on a good and continuous way. To cut off the business in this way only hurts future business start ups as the banks do not lend money anymore and the only way to start is small.
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: MR ME
       
Fri Oct 21 11:21:36 2011
This law must have been sponsored by Paypal !!
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
by: James smith
       
Fri Oct 21 13:02:14 2011
Alright now, how in the world did this hardy guy get this pushed through, was everyone asleep, in his comments he sounded like he wasn't smart enough to do this by himself lets see who else contributed to this nonsense new law, they are wasteing time that should be helping the economy and tax money being spent on some ignorant BS law.
Louisiana Passes Law Banning Cash for Sales of Used Goods   Louisiana Passes Law Banning Cash for Sales of Used Goods
This user has validated their user name. by: permacrisis
       
Fri Oct 21 13:26:09 2011
Was I right??? Was I right??? You're GOD DAMNED RIGHT I was right. The war on used, junk, preowned etc has begun. Didn't I tell ya? And you thought I just hated new stuff!  

Years ago, as a teen diswasher working in a filthy slavery ring of a restaurant, I was told "Get back in your hole". Now we junk dealers are being told the exact same thing, with the same tone of contempt.

Craigslisters must be having a fit. Newmark and Buckmeister better lawyer up, 'cause I see a big one coming.

(Of course, the easy way around this is to have two sides to the building, one side to write "checks" and the other side to "cash" them.)

What about the auction houses down there? Oh yeah that's right, they only have meat raffles.

(But, meat's 'used', isn't it?)

The fat, mouth breathing, monosylabbic overbellied lawmakers who slapped this indescribably stupid law together deserve shotgun marriages to one another's sisters. Oh wait- never mind.
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