Used CD Sales Laws Go Insane

You’ll need to be thumbprinted and present a driver’s license before selling CDs in Florida and Utah as required by a new law that has already passed in those states, and could pass in Rhode Island and Wisconsin (and potentially elsewhere). Used CD stores and pawn shops in states that pass the law are also […]

Snipshot_e4dn173wrx8 You'll need to be thumbprinted and present a driver's license before selling CDs in Florida and Utah as required by a new law that has already passed in those states, and could pass in Rhode Island and Wisconsin (and potentially elsewhere).

Used CD stores and pawn shops in states that pass the law are also barred from paying cash for CDs, offering store credit instead, and must retain CDs for 30 days before reselling them. (Surely, RIAA lobbyists are behind this on some level). PC World reports:

In Florida, the new legislation requires all stores buyingsecond-hand merchandise for resale to apply for a permit andfile security in the form of a $10,000 bond with the Departmentof Agriculture and Consumer Services. In addition, stores wouldbe required to thumb-print customers selling used CDs, andacquire a copy of state-issued identity documents such as adriver's license. Furthermore, stores could issue only storecredit -- not cash -- in exchange for traded CDs, and would berequired to hold discs for 30 days before reselling them.

I remember seeing Garth Brooks blather away on a late night talk showabout what he called "one of the most serious issues affecting theworld today," or words to that effect, before launching into a diatribeagainst used CD sellers who he claimed were robbing him blind. (Ifyour CDs are so bad that your fans turn around and sell them en masse, you have bigger problems.)

Online used CD swapping services such as LaLa
are most likely now not barred from buying or selling CDs in Florida andUtah [according to LaLa -- see update below].

Update: John Kuch of LaLa told me that LaLa's counsel says that since the company doesn't buy CDs from its users or have a retail presence, this law won't affect its CD trading service.

Another Update: Yep - online used CD sites are exempt from the statute:

Fla. Stat. Ch. 530.03(2) (a.k.a Secondhand Dealers Law):

"This Chapter does not apply to...

(o) Any person offering his or her own personal property for sale,
purchase, consignment, or trade via an Internet website, or a person or
entity offering the personal property of others for sale, purchase,
consignment, or trade via an Internet website, when that person or
entity does not have, and is not required to have, a local occupational
or business license for this purpose."

And one more update: From Bill Nguyen, LaLa's general counsel:

"While an alarming sign, the law seemsfocused on other used items where registration makes more sense such asguns. The link with music is probably more accidental thenintentional. Our business is also a service between end-customers andunder state laws, sales and purchases between individuals is exemptfrom such laws."

(image from amoeba)