New Autograph Law In CA

[GasHouseGang]

Anyone else get this email from PSA regarding the new law about selling autographs in California? I wonder what the definition of a "dealer" is?

Important Message from PSA

Dear PSA Customer:

As a Sports and Entertainment collectibles seller located in the State of California, the following information is very important to the survival of your business.

Last January, California Assembly Bill 1570 became the law. The Los Angeles Times Editorial Board called it "one truly horrible law" that was "badly drafted, likely to be ineffective... [and has] serious potential for unintended consequences."

The California Coin and Bullion Merchants Associations has formed an alliance with auction houses, and grading services such as PSA and PSA/DNA, to overturn this draconian legislation. Our bill is Senate Bill 579 by Senator Galgiani.

Although California has had legislation regulating the sale of autographed sports memorabilia for two decades, the obscure law was ineffectual and widely ignored. Last year, at the behest of some Hollywood personalities, Assembly Member Ling Ling Chang introduced AB 1570 to expand the law to cover all autographed items, whether or not they were sports related, including PCGS/NGC/ICG/ANACS signed labels for gold and silver U.S. coins and other signed collectibles. The bill passed the Legislature without opposition and was signed by Governor Brown.

Basically, the new law requires "dealers" to provide a "certificate of authenticity" every time they sell an autographed collectible for more than $5. The seller must warrant the authenticity of the autograph and either declare that he personally witnessed the signing or provide the date, location and the name of the person who witnessed the signing. In most cases, this will be impossible. The seller may not limit the express warranty that the signature is genuine. Any consumer harmed by the dealer’s breach of warranty is liable for up to ten times the actual damages in a civil action plus the consumer’s attorney fees and costs. The dealer will have to disclose whether or not he maintains a surety bond or other insurance to protect the consumer against the dealer’s errors and omissions.

As you know, there is a serious problem with counterfeit autographed sports and entertainment memorabilia. The current law is replete with traps for dealers that trial lawyers are just discovering. We need sellers in signed sports and entertainment collectibles to become active by contacting their California Assembly Member or Senator to urge them to accept additional consumer protection amendments to SB 579 that will provide signed Sport Collectible Dealers with an exemption if they offer products authenticated by PSA or PSA/DNA.

We urge you to join the coalition with grading services, auction houses and CCBMA’s membership to overturn this travesty.

Sincerely,

Barry Stuppler
President, CCBMA Joe Orlando
President, PSA & PSA/DNA

[D. Bergin]

Based on that last paragraph, it looks like PSA wants everybody to go to bat for PSA, and nobody else.

Wonderful!

[packs]

Hmmm this essentially means PSA can't do business in the state doesn't it? Or does it mean you can't submit anything to PSA in California without some kind of declaration letter?

[Michael B]

Look out for a line of moving vans heading to Nevada or Arizona. "Sorry, we lost you items at a rest stop in Barstow or that McDonalds in Needles."

[RichardSimon]

And this is from the law:
(b) Whenever a dealer, in selling or offering to sell to a consumer a collectible in or from this state, provides a description of that collectible as being autographed, the dealer shall furnish a certificate of authenticity to the consumer at the time of sale. The certificate of authenticity shall be in writing, shall be signed by the dealer or his or her authorized agent, and shall specify the date of sale. The certificate of authenticity shall be in at least 10-point boldface type and shall contain the dealer’s true legal name and street address. The dealer shall retain a copy of the certificate of authenticity for not less than seven years. Each certificate of authenticity shall do all of the following:
(1) Describe the collectible and specify the name of the personality who autographed it.
(2) Either specify the purchase price and date of sale or be accompanied by a separate invoice setting forth that information.
(3) Contain an express warranty, which shall be conclusively presumed to be part of the bargain, of the authenticity of the collectible. This warranty shall not be negated or limited by reason of the lack of words such as “warranty” or “guarantee” or because the dealer does not have a specific intent or authorization to make the warranty or because any statement relevant to the collectible is or purports to be, or is capable of being, merely the dealer’s opinion.
(4) Specify whether the collectible is offered as one of a limited edition and, if so, specify (A) how the collectible and edition are numbered and (B) the size of the edition and the size of any prior or anticipated future edition, if known. If the size of the edition and the size of any prior or anticipated future edition is not known, the certificate shall contain an explicit statement to that effect.
(5) Indicate whether the dealer is surety bonded or is otherwise insured to protect the consumer against errors and omissions of the dealer and, if bonded or insured, provide proof thereof.
(6) Indicate the last four digits of the dealer’s resale certificate number from the State Board of Equalization.
(7) Indicate whether the item was autographed in the presence of the dealer and specify the date and location of, and the name of a witness to, the autograph signing.
(8) Indicate whether the item was obtained or purchased from a third party. If so, indicate the name and address of this third party.
(9) Include an identifying serial number that corresponds to an identifying number printed on the collectible item, if any. The serial number shall also be printed on the sales receipt. If the sales receipt is printed electronically, the dealer may manually write the serial number on the receipt.
(c) A dealer shall not represent an item as a collectible if it was not autographed by the personality in his or her own hand.
(d) No dealer shall display or offer for sale a collectible in this state unless, at the location where the collectible is offered for sale and in close proximity to the collectible merchandise, there is a conspicuous sign that reads as follows:
“SALE OF AUTOGRAPHED MEMORABILIA: AS REQUIRED BY LAW, A DEALER WHO SELLS TO A CONSUMER ANY MEMORABILIA DESCRIBED AS BEING AUTOGRAPHED MUST PROVIDE A WRITTEN CERTIFICATE OF AUTHENTICITY AT THE TIME OF SALE. THIS DEALER MAY BE SURETY BONDED OR OTHERWISE INSURED TO ENSURE THE AUTHENTICITY OF ANY COLLECTIBLE SOLD BY THIS DEALER.”

(e) Any dealer engaged in a mail-order, telephone-order, or online business for the sale of collectibles in or from this state:
(1) Shall include the disclosure specified in subdivision (d), in type of conspicuous size, in any written advertisement relating to a collectible.
(2) Shall include in each television or online advertisement relating to a collectible the following written on-screen message, which shall be prominently displayed, easily readable, and clearly visible for no less than five seconds, and which shall be repeated for five seconds once during each four-minute segment of the advertisement following the initial four minutes:
“A written certificate of authenticity is provided with each autographed collectible, as required by law. This dealer may be surety bonded or otherwise insured to ensure the authenticity of any collectible sold by this dealer.
-----

How the hell does anyone supply the name of the witness to the autograph signing of Teddy Roosevelt, Babe Ruth, Lou Gehrig, Ty Cobb,, etc.
This law is screwed up badly and I am discussing any possible ramifications with my attorney.
IMHO this law cannot stand up in court. Hopefully nor can PSA's attempt to corner the market which seems to me to be blatantly anti trust.
But I would want to hear the lawyers here opine on this topic.

"I wonder what the definition of a "dealer" is?"
Someone who makes a living selling autographs?
Someone who sells a few autographs from his collection?
Who the hell knows.

[JimStinson]

The definition of "dealer" according to California assembly Bill 1570, Means essentially EVERYONE ..So the best thing to do when you see any collectible is don't touch it and walk slowly away with your hands in the air.

(4) (A) “Dealer” means a person who is principally in the business of selling or offering for sale collectibles in or from this state, exclusively or nonexclusively, or a person who by his or her occupation holds himself or herself out as having knowledge or skill peculiar to collectibles, or to whom that knowledge or skill may be attributed by his or her employment of an agent or other intermediary that by his or her occupation holds himself or herself out as having that knowledge or skill. “Dealer” includes an auctioneer who sells collectibles at a public auction, and also includes persons who are consignors or representatives or agents of auctioneers. “Dealer” includes a person engaged in a mail order, telephone order, online, or cable television business for the sale of collectibles.

[Mr. Zipper]

Thanks to this absurdity, Easton Press will no longer ship signed books to California. Guess it's not worth the hassle.

Crooked sellers won't hesitate to manufacture a bogus COA that meets the letter of the law, so the law only harms legitimate dealers.

[earlywynnfan]

It says "a dealer selling or offering to sell to a consumer in this state." (removed a few words there.)

Does this mean that I, in Cleveland, must obey this law if I sell on ebay to a customer in CA?

It says that the selling must be my business, where this is just flipping on the side, but I don't really want to have to go to court to make that distinction!

[steve B]

Originally Posted by RichardSimon

(7) Indicate whether the item was autographed in the presence of the dealer and specify the date and location of, and the name of a witness to, the autograph signing.
(8) Indicate whether the item was obtained or purchased from a third party. If so, indicate the name and address of this third party.


How the hell does anyone supply the name of the witness to the autograph signing of Teddy Roosevelt, Babe Ruth, Lou Gehrig, Ty Cobb,, etc.
This law is screwed up badly and I am discussing any possible ramifications with my attorney.

The attorney would know for sure, but as I read it the date, time and name of a witness is only for stuff the dealer saw signed. Everything else would just be something purchased from a third party. Still a pain in the backside, as that now requires a bunch of record keeping.

The law as I see it also forbids signed cards in packs since they obviously can't contain all the required info like date of sale and price.

To me this next bit seems worse.

Originally Posted by RichardSimon

(c) A dealer shall not represent an item as a collectible if it was not autographed by the personality in his or her own hand.
(d) No dealer shall display or offer for sale a collectible in this state unless, at the location where the collectible is offered for sale and in close proximity to the collectible merchandise, there is a conspicuous sign that reads as follows:
“SALE OF AUTOGRAPHED MEMORABILIA: AS REQUIRED BY LAW, A DEALER WHO SELLS TO A CONSUMER ANY MEMORABILIA DESCRIBED AS BEING AUTOGRAPHED MUST PROVIDE A WRITTEN CERTIFICATE OF AUTHENTICITY AT THE TIME OF SALE. THIS DEALER MAY BE SURETY BONDED OR OTHERWISE INSURED TO ENSURE THE AUTHENTICITY OF ANY COLLECTIBLE SOLD BY THIS DEALER.”

So if it's got a printed signature or even no signature you can't say it's collectible?
And/or if someone has collectibles that aren't signed they still have to have the warning sign?
Since so many things are collectible, that means pretty much every store in CA including retail.


A pretty miserable law in a lot of ways. I can see what they were trying to do, but they should have put more than 15 minutes into thinking about how to do it.

Steve B

[Aquarian Sports Cards]

OP is misinterpreting some of the law. There is nothing that states that someone has to be an ultimate witness of the signature.

[Bcwcardz]

Welcome to California friends. Absurdity runs this state. Always deciding whats best for us, the dumb consumer.

Sent from my SM-T350 using Tapatalk

[MooseDog]

For what it's worth, two retired lawyers who volunteer for our organization don't think this applies unless your PRIMARY business activity is the selling of "collectibles" (also open to interpretation).

They both agreed the law is extremely poorly worded.

[homerunhitter]

my only thoughts on this is what if we buy an autograph on ebay that doesnt have a coa fom the seller, keep it a few years then decide to sell it on ebay? we dont know the history of the autograph, if its authentic or not or how the owner got it. so are we suppose to make our own coa with no knowledge of where the autograph was obtained from (by the previous seller?)

also, if an item is slabbed or authenticated by psa, jsa, steiner, tristar, etc, do we need a coa for it to sell or will the TPA name such as PSA, JSA) stand by itself?

[D. Bergin]

Originally Posted by homerunhitter

my only thoughts on this is what if we buy an autograph on ebay that doesnt have a coa fom the seller, keep it a few years then decide to sell it on ebay? we dont know the history of the autograph, if its authentic or not or how the owner got it. so are we suppose to make our own coa with no knowledge of where the autograph was obtained from (by the previous seller?)

also, if an item is slabbed or authenticated by psa, jsa, steiner, tristar, etc, do we need a coa for it to sell or will the TPA name such as PSA, JSA) stand by itself?

Well, based on the letter at the top of the page, PSA is trying to wield this as an inside track into a monopoly for them in California.

Of course it's in the guise of concern for collectors and dealers.

[RichardSimon]

Originally Posted by D. Bergin

Well, based on the letter at the top of the page, PSA is trying to wield this as an inside track into a monopoly for them in California.

Of course it's in the guise of concern for collectors and dealers.

Of course another humanitarian gesture by that beloved corporation .

[Leon]

Almost philanthropic.

Originally Posted by RichardSimon

Of course another humanitarian gesture by that beloved corporation .

[RichardSimon]

Originally Posted by Leon

Almost philanthropic.

Now why did I not think of that word to add to my description? .
Thank you Leon.

[D. Bergin]

Can't wait for the day I have to spend $50 dollars with PSA to sell my $10 Bob Feller autograph to a collector in California.

[RichardSimon]

Originally Posted by D. Bergin

Can't wait for the day I have to spend $50 dollars with PSA to sell my $10 Bob Feller autograph to a collector in California.

You know someone who will pay $10 for Bob Feller??

[GrayGhost]

Originally Posted by RichardSimon

You know someone who will pay $10 for Bob Feller??

I will, for 5 maybe