Auctioneers and firearms: spend $200 to make thousands and stay out of jail.
Nothing written in this article shall be taken as legal advice. I am not a lawyer and don’t pretend to be one. These are my opinions based on reading federal and state laws.
The one thing that almost every Auctioneer has in common that I have seen, is that at some point in time, they are all going to sell a firearm, whether it’s for an estate or a consignment auction. Are these auctioneers legally able to do it though? That depends.
Selling firearms for Estates: The ATF (Bureau of Alcohol, Tobacco, and Firearms) says auctioneers selling firearms for an estate are acting as an agent of the executor and assisting the executor in finding buyers for the firearms. This would be true as long as the firearm remains in the control and possession of the estate. If the auctioneer takes the firearms to their auction house or a different location to host the auction, the auctioneer is now in control and possession of the firearm and must have an Federal Firearms License (FFL).
Can a non-FFL auctioneer have a consignment auction with firearms? Most answers would lead to NO. The ATF says if you engage in the regular business of selling firearms you need an FFL. Some people may argue it’s not a regular course of their business. To that, I say I would rather not have to argue anything in court if the ATF agent disagrees with my interpretation.
Can a non-FFL auctioneer have a consignment auction with firearms and use a local FFL dealer to do the transfers? This MAY be a way around it. The laws talk about control and possession. So if the auctioneer takes a Firearm from an individual, they are there in control and possession of firearms, even if it’s for a short time to take it to the FFL. By that answer, the auctioneer could not have the sale. But could the firearm owner take the firearm directly to the FFL and you act as a facilitator for the seller or FFL dealer? I will reference my last paragraph by stating I would rather not have to argue that one in court.
Can a licensed FFL dealer have a consignment auction with firearms at the local fairground or convention center? Sure, but unless your FFL license is at that address, you can only have the firearms there for viewing and must be taken back to the address on the FFL for the transfers.
Unfortunately, I see many of our local and national auctioneers having firearm auctions that are putting them in jeopardy of getting in trouble. With today’s social climate, gun laws are undoubtedly going to continue to be scrutinized. So, in closing, for me, it’s simple, an FFL license costs $200 for three years. If you’re the FFL, you can start charging a transfer fee and keeping it, and you won’t have to defend what you were doing in court and probably won’t go to jail.
This is only a VERY brief summary of a couple of laws pertaining to this subject matter.
Jordon Hansen
Hansen Auction Service
IAA One Year Director
