North Dakota’s Public Service Commission is exploring whether people like Mark Nichols, who runs a small store in Crosby in northwestern North Dakota, should be licensed as auctioneers before they may legally use the eBay Internet company to sell merchandise for others.
“I don’t think it offers any additional protection for the consumer,” Nichols said. “It just creates a lot of red tape for the business, as well as having to put out a lot of money.”
In North Dakota and other states, the growing popularity of peddling goods on the Internet is prompting scrutiny of whether sellers who hawk others’ merchandise should be regulated.
The PSC licenses auctioneers and auction clerks, who handle money, bills and paperwork at sales. North Dakota law defines an auctioneer as someone who is compensated for selling property at a public auction “as a whole or partial vocation.”
The commission is asking Attorney General Wayne Stenehjem for a legal opinion about whether the definition of an auctioneer covers eBay sellers, who post sale notices for goods on the company’s Web site and take bids from interested buyers.
Commissioner Kevin Cramer said he did not believe the law affects eBay sellers who peddle their own goods, but said it could apply to people who sell property consigned by others for a fee or a percentage of the proceeds.
“Our laws probably didn’t contemplate this type of commerce,” Cramer said. “It’s probably time to take a look at them.”
To get a North Dakota license, auctioneers must pay a $35 fee, obtain a $5,000 surety bond and undergo training at one of eight PSC-approved auction schools. The cost of attending the closest schools, in Mankato, Minn., and Billings, Mont., ranges from $795 to $1,625 for a week to 10 days of training.

Posted: 10|10|05 at 9:30 am. Filed under: US News.