eBay Vs The Louisiana Auctioneer’s Licensing Board
Published April 19th, 2006
The Louisiana Auctioneer’s Licensing Board, citing an existing state law, decided that “trading assistants” operating on eBay should pay $300 for an auctioneer’s license as well as pay $50 to $100 a year for a performance surety bond to protect consumers in the event of fraud.
eBay sellers in the Pelican State might well be alarmed by these licensing requirements, except for one detail: Of the million registered eBay users in Louisiana, only 460 are “trading assistants” — individuals who manage auctions for others in exchange for a commission; the other 999,540, who handle their own auctions would be exempt from the new fees.
Fearing Louisiana might become a test case for other states, eBay resorted to the oldest method of dirty politics: inciting the mob. The company sent an e-mail to all registered users in Louisiana — not just the handful who actually would be affected — urging them to call and write their representatives to express outrage over the bill.
Needless to say, the Louisiana Auctioneer’s Licensing Board received a few phone calls and e-mails last week.
Though the truth now has come out, the damage already has been done. Bitter denunciations of Louisiana’s overwhelming greed are still being posted on various newsgroups and blogs (the new national outlet for imprecise facts and snap judgments, it seems).
Regardless, the issue may soon be decided in Baton Rouge — in favor of eBay. At the company’s behest, Noble Ellington, D-Winnsboro, filed senate bill 642, which would exempt most eBay auctions (third-party and otherwise) from the licensing requirements. The Senate Commerce Committee seems likely to pass it, since the licensing revenues would have been minimal in any case. Left to dangle is the issue of consumer protection from incompetent or unscrupulous trading assistants that a licensing step might have afforded.
Though eBay will get its way, the company has tarnished what previously was a good corporate reputation. The company exploited its strong relationship with its customers to stir up political rancor and didn’t let a little thing like the truth get in its way. Shame on eBay for resorting to bully tactics, and shame on those in Baton Rouge who kow-towed rather than fighting back.
Related Articles