New Laws Hurting Used Game and CD Retailers

The used game business has been growing by leaps and bounds in recent years. However, some new laws are placing some severe limits on retailers who buy second-hand CD’s.

New legislation in Florida will require all stores that buy second-hand merchandise for resale purposes to obtain a permit, and to also file a $10,000 security bond with the Department of Agriculture and Consumer Services. More ominously, these retailers will also be required to identify the sellers by getting a copy of their driver’s license and taking their thumbprint.

Also, the practice of buying used CD’s for cash is longer allowed, as these retailers are now allowed to only offer store credit in exchange for the used media. Not only that, but the store has to hold the discs for 30 days before they are allowed to resell them. Already, one retailer has pulled used CD’s from their business due to being cited under this new law.

The National Association of Recording Merchandisers is trying to help shape this legislation, and have so far managed to eke out a partial exemption, so that they don’t have to have a permit, and they only have to hold the media 15 days before reselling it.

I’m sure someone in Florida feel s this a good piece of legislation, but my question is why? Have thefts of CD’s gone sky-high? Are victimized people filed suit to receive their lost CD’s? Just what, if any, rationale exists behind this. Selling used CD’s and games has always been a side endeavor for many specialty shops. With this new law, I bet many of them cease to offer this service, as $10,000 is a lot of money to lay down so you can continue to pick up used copies of Double Dribble for $3. We’ll have to wait and see how this shakes out.