This month, President Obama took executive action to reduce gun violence in the United States. His proposed changes include widely enforced background checks, requiring a license to sell guns (and sellers must conduct background checks), and a call to invest $500 million dollars to better address mental health issues (1). The goal of these changes is to reduce gun violence by making the process of buying a gun more regulated and monitored. One such change would be to close the “gun show loophole,” where gun sellers are not required to perform background checks on buyers. Under federal law, these private sellers do not have to record the sale or ask for identification, either (2).
“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is making clear that it doesn’t matter where you conduct your business—from a store, at gun shows, or over the Internet: If you’re in the business of selling firearms, you must get a license and conduct background checks.”
Interestingly, when the topic of gun control is at the forefront of political discourse, firearms sales tend to rise. Firearms manufacturers Smith & Wesson and Sturm, Ruger & Co. have seen stock soar over the past year, by 160% and 80% respectively (3). Since Obama’s executive order this month, these stocks have jumped another 11% and 7%. GunBroker.com, the world’s largest firearms auction site and ecomdash integration partner, has experienced sale surges as well.
Steve Urvan, CEO of GunBroker.com, has noticed a cause-effect relation between the discourse and gun sales. “There is a definite correlation between proposed gun legislation and an increase in firearms sales,” Urvan told us.
GunBroker.com complies with all federal, state and local laws when selling firearms. According to a statement released by Urvan:
“As we clearly state on our website, all transactions on GunBroker.com are made in full compliance with all federal state, and local laws, using licensed federal firearms dealers as transfer agents. Federal law requires those dealers to run a background check on the buyer. There is a strict compliance system in place and the Federal Bureau of Alcohol, Tobacco, and Firearms audits dealers for compliance.”
Firearm sales regulations will continue to be at the forefront of discourse in this election year. It will be interested to see how the dialogue will influence online firearms sales.