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Post Info TOPIC: New laws create second-hand woes for CD retailers


The Chosen Woo

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New laws create second-hand woes for CD retailers


New laws create second-hand woes for CD retailers

By Ed ChristmanFri May 4, 10:37 PM ET

Independent merchants selling and buying used CDs across the United States say they are alarmed by stepped-up pawn-broker-related laws recently enacted in Florida and Utah and pending in Rhode Island and Wisconsin.

In Florida, the new legislation requires all stores buying second-hand merchandise for resale to apply for a permit and file security in the form of a $10,000 bond with the Department of Agriculture and Consumer Services. In addition, stores would be required to thumb-print customers selling used CDs, and acquire a copy of state-issued identity documents such as a driver's license. Furthermore, stores could issue only store credit -- not cash -- in exchange for traded CDs, and would be required to hold discs for 30 days before reselling them.

At least one Florida town has enforced the law, resulting in the cited merchant pulling used CDs from its store.

The law in Utah and the legislation pending in Wisconsin and Rhode Island are also harsher than typical pawn-shop laws, according to John Mitchell, outside counsel for NARM (National Association of Recording Merchandisers).

Brian Faber, director of operations for the eight-store, Phoenix-based Zia chain, says that while the rules sound onerous and could devalue the used-CD market, "we would comply and the market would ultimately adjust itself."

Faber says about 40 percent of his chain's volume comes from used-CD sales, paying out 80 percent cash and 20 percent store credit. If retailers could only pay out credit, he says, it could negatively affect product flow. The used-CD business' low pricing, he adds, is already being devalued by falling prices of new CDs.

Meanwhile, NARM says it will try to help shape the pending legislation. In Florida, retailers selling previously owned videos and videogames managed to carve out a partial exemption from the law so that they do not need a permit and have to wait only 15 days before reselling the merchandise.


 

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Ghost In The Machine

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I see both good and bad in this.  I like the idea of thumbprinting the sellers and asking for I.D., and I also like the idea of a holding period before reselling only because I recently experienced the loss of my cds through theft.....I'm 99% sure mine have already been sold off.  However, I also go to these places to buy and sell cds, and while I personally wouldn't mind these measures to sell, I'm sure that a lot of other honest people would be offended by it.  Yet in a way, the used cd/video game stores are kind of like a pawn shop....you take in goods you no longer want and walk away with some cash in your pocket, or a store credit.

But I think a $10,000 bond is pretty steep and would cause an unnecessary financial burden on a lot of these places. 

So I guess I'm kind of torn on this.......I'd like to see some course of action that would ensure stolen cds/video games aren't being sold in the stores, and at the same time I realize it would be a huge financial burden on the store owners to implement something like this. 

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Grand Poobah

    



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would this apply to internet purchases?? RIggs, I bet you are happy you got out when you did...

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Lord of Linguists

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I personally am against this, I buy from places like this usually to replace lost/stolen cd's I would rather pay half price to get my stuff replaced then full price, thieves will find a way to sell off their booty regardless if stores impliment this or not. As for regular poeple that just sell stuff they don't want...... this will cause some of these buisinesses to go under making it harder to find good bargains on things. I don't believe this will hamper crime in any way which is what these laws idealy want to do.

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I don't see a problem with the holding period or the identification, but it should apply to all items, not just CDs. But the required bond and store credit policy is going a bit too far.

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