Auctioneers licenses an issue for eBay sellers

Thursday, May 03, 2007

By Teresa F. Lindeman, Pittsburgh Post-Gazette

 

Pennsylvania eBay sellers may need to keep an eye on a legal skirmish recently launched by the state's Bureau of Professional and Occupational Affairs.

Two eBay businesses, an iSold It franchise store operator in Harrisburg and a home-based eBay trading assistant in Lehigh County, were notified last month that state regulators want to know why they haven't obtained auctioneers licenses.

Based on interviews with the two businesses, investigators felt a good case could be made they were practicing without a license, according to the state filing. The eBay sellers have 30 days to respond, said department spokesman Leslie Amoros. Typically, the next step is an administrative hearing.

Regulation of the burgeoning industry helping customers sell goods on eBay has been an ongoing issue around the country. Some states have considered classifying such businesses as pawn shops for the purpose of regulation, while others have looked toward the auctioneer route. The online Web auction company has been active in fighting such efforts, arguing that they would add unneeded costs without helping consumers.

In the new Pennsylvania cases, which were first reported by online industry publication AuctionBytes, possible penalties include fines of up to $1,000 for each violation. The iSold It store operator told the investigator he had placed about 4,000 items on eBay for clients. The home-based operator said she had sold more than 10,000 items since 2002.