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by Stacy Collett

(IDG) -- North Carolina will soon crack down on auctioneers in the state who put items up for bid on the Internet without a license.

By year's end, the North Carolina Auctioneer Licensing Board in Raleigh will distribute pamphlets to auction sites and the public, making them aware of a long-standing state law that requires auctioneers to be licensed or face misdemeanor charges and a $2,000 fine. The board earlier this month revisited the law to determine that it also applied to the Internet.

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Licensing Board Executive Director Bob Hamilton said the move is a preventive measure. "With the explosion of Internet auctions, we've gotten to a point where complaints are just around the corner. And people don't know who to call," Hamilton said.

A preliminary check of eBay Inc.'s leading auction site showed that some 20,000 auctions originated in North Carolina, he added. The license requirement wouldn't affect eBay and other auction mediators, however. Only the individuals or companies that are exchanging goods for cash or offering consignment would need a license.

But some industry observers said the licensing requirement could have a chilling effect on popular auction sites. "It's a two-edged sword that will probably diminish the number of sellers [but] increase the confidence of buyers," said Vernon Keenan, Internet analyst at Keenan Vision Inc. in San Francisco.

To become licensed, auctioneers must pass an exam that tests their knowledge of state auction laws and pay a fee of $250 the first year, and $150 annually. Initially the board will seek to "educate" auctioneers, but will eventually take proactive measures by monitoring auction sites and checking on auctioneers' licenses.

North Carolina isn't the first state to broaden its auction licensing laws. The New Hampshire Board of Auctioneers also is requiring online auctioneers to be licensed, and the Tennessee auctioneer commission's board is considering expanding the scope of its license requirements.