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State regulation of eBay sellers again made headlines this week - this time in Louisiana (http://digbig.com/4hdsf). eBay sent an email to sellers in the state to warn them that the state's auctioneer licensing requirements would likely affect them.

Two local papers that covered the issue spoke to a computer retailer who had to let go an employee after deciding he could no longer sell on eBay due to state restrictions.

That should be a wake-up call to states. The math doesn't add up when they try to collect annual licensing fees and, in doing so, put folks in the unemployment lines. These are people in their own states they are hurting.

Trying to pretend that eBay sellers are auctioneers and making them attend auctioneer school, get bonded and pay large licensing fees doesn't make sense. Nor does it make sense to treat eBay sellers like pawnbrokers (and make them fingerprint customers).

eBay has set up a website for its members to learn more about its government relations efforts at (http://www.ebaymainstreet.com). If you live in Florida, eBay is holding a "Main Street Meeting" in Tallahassee on April 20, 2006, to "discuss efforts to protect eBay businesses from negative government interference and taxation."

Tallahassee was the location of the arrest of an eBay drop-off store owner last year for failing to follow law applying to pawn shops and consignment shops. The judge threw out the case because he found the laws did not apply to eBay drop-off stores (http://auctionbytes.com/cab/abn/y05/m03/i30/s02).

Last year, I wrote an article titled, "eBay Drop-off Stores: How to Comply with State Regulations" (http://digbig.com/4hdsg). However, things can change quickly, and one state agency might not know of requirements of another. This was the case in Louisiana last year. An eBay drop-off storeowner contacted the Secretary of State's office in Louisiana before starting his business and received a checklist of required permits. An auctioneer's license was not included as a requirement, but 2 months after opening his store, he was informed that the Louisiana Auctioneer's Licensing Board was going to enforce the need for a license by eBay Trading Assistants beginning in July 2005.

I believe that most people want to comply with laws and regulations. But when those regulations feel punitive rather than reasonable, it may be time to take action. FirstGov.gov is a website to help U.S. citizens navigate government agencies and locate elected officials to let them voice their concerns (http://www.firstgov.gov).

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About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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