Want To Sell Back CDs In Florida? Get Your Thumbprint Ready

If you’re planning on moving away from Florida, you might do well to prune your CD collection after you relocate, as the state recently passed “second-hand goods legislation” requiring those selling CDs to hand over a copy of a government-issued ID and get thumbprinted before trading in their wares–and, in turn, requiring stores to hold on to the goods for 21 days before they were put back out on the shelves. Billboard.biz took a look at the effects laws like Florida’s will have on the used-CD market across the nation:

In the states where pawn shop laws are getting more restrictive, it practically makes it prohibitive to sell used CDs, says one merchant. In fact, one music retailer — who operates stores in Florida but is not headquartered there — reports that one of the chain’s stores has already had a visit from the local police enforcing the law. As a result, the chain stopped dealing in used goods in that store.

Laws that result in the curtailment of used CD sales likely would be considered good news to record labels and music distributor executives who have long abhorred the growing strength of the used CD market. In fact, until the mid-1990’s labels used to put pressure on merchants who bought directly from them not to carry such merchants. At the time, some majors attempted to kill the strategy by initiating new policies to withhold cooperative advertising from retailers buying directly from them but selling used CDs, a move endorsed by some artists including Garth Brooks.

But that effort triggered a revolt from independent stores and consumers, highlighted by barbeques of Garth Brook CDs, in some places called a “garth-eque.” It also served as a catalyst for a Federal Trade Commission investigation of the music industry practices, forcing those majors to back down from its anti-used CD stance.

Since then, merchants who buy direct from majors who participate in the category say that used CD sales have grown from about 5% to sometimes 10%-20% of overall CD revenues. Also, those sales are more profitable.

As Coolfer notes, the growth in used-CD sale revenues could be attributed in large part to the overall decline in CD sales; still, we’re sure that the record labels aren’t looking Florida’s gift horse in the mouth. All of a sudden, we feel even worse for any music critics living down there than we already did.

New Laws Threaten Used CD Market [Billboard.biz, via Coolfer]