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FOR IMMEDIATE RELEASE |
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State Rep. Mike Sturla Majority Deputy Whip Chairman, Professional Licensure Committee |
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House passes bill to protect consumers from online auction fraud
Sturla negotiated final language of legislation
HARRISBURG, Oct. 8 – State Rep. Mike Sturla, D-Lancaster, today voted for S.B. 908 that included language he negotiated to better protect Pennsylvanians from online auction frauds. Sturla originally introduced H.B. 1899 last year, which includes some of the provisions in the passed bill that now goes to governor’s desk to be signed into law.
"As chairman of the House Professional Licensure Committee, I have been working nearly all of this session on how to effectively address the growing problem of online auction fraud," Sturla said. "I commend Senators Wonderling and Tomlinson for helping to create a bipartisan solution."
Sturla noted that the top Internet complaint in Pennsylvania in 2007 was online auction fraud, which was 35.5 percent of 6,494 reported cases. The median loss per complaint was $563.99.
To address this issue, S.B. 908 would amend the Auctioneer and Auction Licensing Act to provide for trading assistants. Trading assistants would be defined as individuals who, for a commission or fee, conduct or intend to conduct a Pennsylvania business of accepting personal property to sell on behalf of another through an online Internet bidding platform. Trading assistants would have to register with the state, pay a $100 registration fee, and obtain a $5,000 surety bond, which should cost about $50. They would be required to keep records of all sales and provide a receipt for all transactions. The state would post a list of all registered trading assistants online.
"This legislation empowers the Department of State to oversee the activities of online trading assistants in a fair and just way. It also enables responsible trading assistants to achieve accreditation from the state, which will make consumers more comfortable in utilizing their services. Meanwhile, those who commit fraud will now have to pay the consequences," Sturla said.
Trading assistants who fail to register or commit a criminal offense could receive a fine up to $500 and/or imprisonment up to three months. A second offense would increase the fine to between $2,000 and $5,000 and imprisonment between one and two years. The State Board of Auctioneer Examiners also would be able to levy a civil penalty of up to $1,000.
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