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).