Secondhand Dealer License

[what*alice*found]

Hi All,

I've started selling second hand clothing on Ebay fairly regularly and I'm thinking of having a real go and making a proper business for you in the next few months or so. 

I was wondering if I will need a secondhand dealer license? http://www.fairtrading.qld.gov.au/shd-pawnbroker-licence.htm

Does anyone else selling on Ebay have one or know much more about it?

I have sent an email to Fair Trading but I would be interested to hear any firsthand experience. 

I don't want to break rules but I'm wondering if it is really necessary. I get all of my stock from second hand shops or yard sales. 

Thank you 🙂

[zelly888]

No you don't need a licence to sell second hand clothing,you mainly need a licence if you are selling high end items eg jewelry,watches,mobile phones,car accessories etc as these are considered to be a high risk of theft.

[what*alice*found]

Thanks for your quick response. The QLD website doesn't mention any exemptions for clothes, but the NSW and VIC sites do, so I'm hoping it is just an oversight.

[lyndal1838]

I know several sellers in Queensland who sell clothing....none of them have secondhand dealers licences.  It is not necessary.

[reloveddesigner]

hello there

I just found your old post - what was the final outcome?

Office of Fair Trading in Queensland is unable to tell me!!!

I need to seek legal advice.

Crazy given I just want to sell 2nd hand clothes!!

cheers 

Kym

[roundaboutantiques]

If you are purchasing secondhand items with the intention of resale - you need a Secondhand Dealers Licence. This has been the law for decades (our family were first licenced as Dealers in Qld in 1983 - and hold one of the earliest current licence numbers).

Unfortunately ebay participants and lots of people commenting here have no experience - they simply "follow" whatever the other bloke is doing - that doesn't make it "right" or legal and lawful.

The Office of Fair Trading has really cracked down in Queensland in the last year or so - and lots of people who had previously relied on a wing and a prayer are finding out compliance with the law is actually necessary.

[chameleon54]

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@roundaboutantiques wrote:

If you are purchasing secondhand items with the intention of resale - you need a Secondhand Dealers Licence. This has been the law for decades (our family were first licenced as Dealers in Qld in 1983 - and hold one of the earliest current licence numbers).

Unfortunately ebay participants and lots of people commenting here have no experience - they simply "follow" whatever the other bloke is doing - that doesn't make it "right" or legal and lawful.

The Office of Fair Trading has really cracked down in Queensland in the last year or so - and lots of people who had previously relied on a wing and a prayer are finding out compliance with the law is actually necessary.

---

Your comments are correct for old school businesses who have a bricks and mortar store located in Queensland. The information that I looked at re. licences for traders in second hand goods all relates to physical B & M stores, but it makes no mention of internet websites. ie. displaying your licence at your shop, extra fees for multiple shops etc. One example ( of several ) is given below  EDIT - Sorry, links not working 

https://www.qld.gov.au/law/laws-regulated-industries-and-accountability/queensland-laws-and-regulati...

https://www.qld.gov.au/law/laws-regulated-industries-and-accountability/queensland-laws-and-regulati...

While I am no expert in Queensland law, ( or any law for that matter ) I suspect ebay sales attract the same issues all government agencies are grappling with. ie. how to regulate a cyber industry, often not even registered in the country it is trading in.

My best guess is the information provided by roundaboutantiques may not apply to internet based businesses simply because they do not have a physical premises.

It could possibly be another example of the law not having caught up with modern technology.

[gec2002]

In Victoria (may or may not apply to other states) there is no specific exemption for online trading, however there are provisions for certain Goods to be Exempt from the Act.  These are low value goods which among others include clothing, kitchenware (pots, pans etc but not electrical or electronic appliances), most domestic whitegoods, cutlery and glassware, salvaged building materials, factory seconds, books, magazines and periodicals.

[sarahs_preloved_booksnbits]

These were the exemptions where a second hand dealers licence is not required (from the QLD government website).  

Licence exemptions

Second-hand dealing

You do not need a second-hand dealer licence if you:

• sell weapons as a licensed weapons dealer
• hire out second-hand goods
• are a registered banking or life insurance company, trustee company, friendly society or building society
• are a registered charity
• are a community or religious organisation
• are a local government.

You don’t need a licence if you only sell:

• newspapers, books, pamphlets, periodicals or other printed publications
• stamps or coins
• goods or items that your customers returned to you for refund or exchange
• motor vehicle batteries
• used tyres
• collector's cards.

[chameleon54]

3.0 INDUSTRY PROFILE Under the provisions of the SD&C Act, persons operating as second-hand dealers,... 

From a Queensland government review into second hand dealers licences. The important bit is that it ONLY APPLIES to dealers who have a premisess that they sell from. This includes market stalls, BUT NOTONLINEE SALES ONLY. If you have a physical bricks and mortar premisess that you sell both in store and online that would fall under the act, but if you don'tt have a defined premises that is open to the public, THE ACT DOES NOT APPLY.ie. According to this report, QueenslandEbayy sellers who dont have a defined premises open to the public do not require a second hand dealers licence.

edit - Unfortunately it looks like all of these government links are blocked. Should be enough info in the link title to google it yourself.