Fair Trade Practices

The Board of Directors of the American Booksellers Association today sent the following letter to the U.S. Department of Justice requesting that it investigate practices by Amazon.com, Wal-Mart, and Target that it believes constitute illegal predatory pricing that is damaging to the book industry and harmful to consumers.

VIA OVERNIGHT MAIL AND E-MAIL

October 22, 2009

With no fanfare, Barnes & Noble has begun collecting sales tax on online purchases made through its Barnes&Noble.com website in 38 states. The company website currently notes, "In accordance with applicable law, Barnes&Noble.com collects tax in all but the following states: Arizona, Hawaii, Louisiana, Maine, Mississippi, New Mexico, Vermont, and the District of Columbia." States that have no sales tax are Alaska, Delaware, Montana, New Hampshire, and Oregon.

Volvo did not violate Robinson-Patman Act, court declares

On July 25, ABA joined a number of retail and dealer trade groups in submitting an amicus brief to the U.S. Supreme Court in support of the Robinson-Patman Act (RPA) -- a federal law enacted in 1936 that protects individual competitors from price discrimination in favor of large chain stores by their suppliers. ABA submitted its friend-of-the-court brief in support of the Arkansas-based truck dealer Reeder-Simco GMC, which claims Volvo violated RPA by favoring other truck dealers.

As previously reported by Bookselling This Week, in late July, Bruce V. Spiva of the law firm Tycko, Zavareei & Spiva offered comments on behalf of the American Booksellers Association to the Antitrust Modernization Commission Robinson-Patman Act Panel, which was established by Congress to review the nation's antitrust laws.

The American Booksellers Association was recently invited to offer comments before a committee appointed by Congress to look at U.S. federal antitrust law with the view of updating it. The Antitrust Modernization Commission Robinson-Patman Act Panel asked ABA to offer comments because of the association's past lawsuits against major publishers and bookstore chains Barnes & Noble and Borders, which were filed under provisions of the act.

At its April 23 meeting, California's State Board of Equalization (BOE) voted 3-2 to conduct a full-scale audit of Barnesandnoble.com to determine if the online retailer has nexus in the state of California. The vote came after the Board reaffirmed its September 12, 2002 decision that Barnesandnoble.com was obligated to pay California back use taxes for a period of four months -- from November 15, 1999 to March 31, 2000 -- because Barnes & Noble stores were offering coupons discounting purchases made at Barnesandnoble.com.

On March 26, California's Senate Revenue and Taxation Committee approved a bill that would clarify existing California sales tax laws and force retailers with bricks-and-mortar stores or warehouses in California to charge sales tax for purchases made online by California residents. The bill, S.B. 103, was introduced by Senator Deirdre Alpert (D-Coronado) in late January.

Minneapolis Star Tribune Editorial -- February 27, 2003, www.startribune.com

Taxing Sales -- Include Internet, Telephone, Catalogs

When it comes to collecting sales taxes on retail purchases, there now are four classes of retailers.

There should only be one.

Independent booksellers, including Kepler's, protest state's tax system

By David Boyce
Almanac Staff Writer

There is still time for booksellers to add their names to an ABA letter calling on U.S. governors in the 45 states that collect sales tax to enforce existing tax regulations by making sure that retailers with a physical presence in their states collect sales tax on online sales. Hundreds of booksellers have already added their names to the letter, but ABA is looking to include the signatures of as many ABA member stores in these states as possible.

Hundreds of booksellers nationwide have signed on to an ABA letter calling on U.S. governors in the 45 states that collect sales tax to enforce existing tax regulations by making sure that retailers with a physical presence in their states collect sales tax on online sales. Close to 300 booksellers have already responded to an e-mail last week from ABA COO Oren Teicher about the communications effort.

This week many booksellers nationwide received an e-mail from ABA COO Oren Teicher regarding the American Booksellers Association's efforts to achieve greater equity regarding the collection of sales tax on online sales. The e-mail noted the letter that ABA recently sent to the U.S. governors in the 45 states that collect sales tax. In that letter, ABA again called on states to fully enforce existing regulations by ensuring that retailers with a physical presence in their state collect sales tax on online sales.

The troubling effects of falling tax revenues continue to multiply for elected officials facing rapidly growing deficits. Forty-one states collected less revenue in fiscal 2002 than they had planned for in their budgets. Nationwide, sales tax collections were 3.2 percent lower than originally budgeted, personal income tax collections missed states' targets by 12.8 percent, and corporate income taxes were 21.5 percent lower than projected.

The American Booksellers Association has once again called on the U.S. governors in the 45 states that collect sales tax to fully enforce existing regulations by ensuring that retailers with a physical presence in their state collect sales tax on online sales.