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….
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."
It doesn't take much imagination to guess what that "adjustment" might look like.