Do legal gun purchasers have a right to anonymity? In light of the second amendment, that would seem to be a rhetorical question, but some gun control lobbyists have been arguing for years that making records of gun owners public will reduce crime. Personal identity protection and the storage of private data are critical issues for firearms dealers and their customers. Currently, gun ownership privacy is still protected by the federal government and Congress has enacted privacy-protective legislation in order to preserve second amendment rights. The 1986 Firearm Owners Protection Act did several important things related to private personal data: It repealed certain recordkeeping requirements for the sale of ammunition. It prohibited the ATF from centralizing or computerizing firearms purchase records. It reduced criminal penalties for recordkeeping offenses from felonies to misdemeanors. It forbade the ATF from keeping a registry directly linking non-national firearms act firearms to their owners. Form 4473 and Privacy Most of the private information that a firearms dealer collects is on ATF Form 4473. Currently, the information gathered on this form is protected and its transfer is highly restricted. In addition to completing the 4473, FFLs must also record the sale in their transaction log. A dealer must keep this log the entire time he is in business and is required to surrender the log to the ATF when he retires. Form 4473 contains the customer’s name and address, the background check transaction number, the gun’s serial number, and answers to questions about his or her eligibility to purchase a gun. The dealer must keep the Form 4473 for twenty years and is subject to inspection by the ATF. Many believe this record-keeping system creates an informal national firearm registration and that makes 2A supporters cautious. While it is not centralized, it is important to note that the information of a gun purchaser is held by the retail dealer. Since licensed sellers, manufacturers and importers are responsible for recordkeeping, private data is only as secure as the storage and maintenance systems in which it’s held, which is something to think seriously about if there are concerns about personal identity protection for firearms transactions. Personal Identity Protection Now and In the Future Beyond the Federal level, states vary considerably in how they prioritize privacy and regulations. Recently, Congresswoman Marjorie Taylor Greene of Georgia introduced the “Gun Owners Privacy Act” (GOPA) which would prevent the government from unlawfully compiling and storing data from background checks on gun owners and further strengthen Federal regulations. Because firearms are a divisive topic in the United States it’s difficult to predict what regulations, or lack thereof, will come into play in the future. What gun owners and FFLs can do now, is ensure that their privacy and that of their customers is protected. The best way to do this is with secure electronic transactions and storage that guarantee 100% compliance such as E4473. E4473 eliminates the liability and hassle of paper records. It offers unmatched data security & consumer personal identity protection and operates with a five-star security protocol, including document encryption, storage encryption, and two-factor authentication. E4473 provides bulletproof security and privacy, reducing liability for FFLs, and providing a better experience for customers.
What do customers want in a gun purchase experience? According to discussions in various online forums like The High Road, a large part of it is excellent service, including speedy and hassle-free firearm transfers. While the cost of the gun is always an important factor, small gun shop owners (LGS) can compete without offering bargain-basement pricing or extensive inventory if they can offer a great experience. Contrary to popular belief, aggravation is not an inescapable part of buying a firearm. FFLs who want to be successful will pay attention to the following five strategies for increasing sales and profits. Build a Firearms Community Building a memorable experience in your store is important. Celebrate the culture and convictions of the firearms enthusiasts in your community — whether it’s bagging a bear, drinking coffee in the blind, flushing upland birds, or calculating the wind effect on the range. Spend time with them when they come to the shop: hang out, make friends, and be welcoming. If they’re not there to shoot the breeze, get them in and out quickly. It also helps to be active in the local community and have a mobile or direct mail communication strategy so that you can stay in touch between visits. Differentiate Yourself from the Competition Your shop is probably not the only one within driving distance of your potential customers, and just about everyone has access to the internet. To differentiate yourself, begin by asking what your community values. Can you offer training classes, gunsmithing, accessories, optical equipment, or faster, hassle-free paperwork? For example, if you can lessen or remove the friction in the transfer process, you’ll quickly develop loyal, repeat customers. You have the expertise—you know things your customer doesn’t. How can you make your knowledge available to them and become recognized for that? Know Your Customer Whether you’re aware of it or not, you have a niche, so become an expert in it. Do your best to know the laws regarding firearms in your area, not just the ones pertaining to FFLs. For example, do you live in a “stand your ground” state or one with a “castle doctrine”? How old do people need to be to carry a handgun? Can employers prevent employees from having firearms in the parking lot? What are the unique hunting laws in your state? (In Kansas, game birds may only be taken in flight.) Due to ATF-required record-keeping, specifically the 4473 Form, you already have quite a bit of information about your customers. Consider developing some high-level buyer profiles to boost your marketing efforts. Offer Excellent Service Service is the differentiator between firearms retailers, whether they are big-box, online, or local gun stores. Excellent customer service includes useful information, respect, patience with questions, and fast turnaround times. For people who know what they want, the longest wait is likely to be processing the 4473, with wait times increasing in proportion to the number of people in the store. One customer described his experience this way: “Well, the rifle the guy brought out was damaged with a big ding that had taken the finish off the top of the receiver. But by that time the second guy had left and had to get called back. Another wait. The second rifle looked OK so I was allowed to start on the Form 4473 on the computer. After completing the NICB [sic] check the clerk had to call another guy back a third time to double-check that all the Ts had been crossed and the Is dotted properly and I was finally allowed to pay and leave. The entire process took about 2 hours from the time I entered the store.” Don’t let this happen in your store. People are inclined to pay a little more for great customer service, including knowledge of gun laws and how to deal with NICS and the BATFE. And finally, you don’t want most of the time people spend in your store to be filling out the 4473. Stay ATF-Compliant for Firearm Transfers There is a lot of misinformation circulating about completing Form 4473 as part of a firearm sale. Some of it comes from the fact that workers at the sales counter often don’t have the same level of knowledge as the FFL. That in itself is aggravating enough, but when that lack of knowledge or confusion about the process causes customer frustration, LGS sales are negatively affected. Even worse, if the knowledge gaps create areas of non-compliance, the firearms dealer’s license could be revoked. For example, you don’t want one of your employees handling Form 4473 to the customer as if it was their receipt, and yes, this has happened. The ATF is very clear about how the Form 4473 process is supposed to take place. If you’re ever audited, the IOI will be looking at it with a microscope. Your job is to balance the needs of your customers with the requirements of the ATF. It’s possible to accomplish both of these goals at the same time and do it better than the competition. The E4473 platform allows your customers to breeze through Form 4473 while keeping you 100% compliant with ATF regulations. Fast track your firearm sales with E4473.
In August 2020, datasets containing over 240,000 records of the Utah Gun Exchange website were posted openly on a popular hacking forum. While the stolen databases didn’t contain any financial records, they did contain email addresses and hashed passwords. Many people hope and even believe that a data security breach won’t happen to them. The reality is that a data breach can happen to almost anyone and when it occurs, the ramifications are widespread. That’s why it is essential for firearms dealers to use security-centric software that focuses on complying with ATF security regulations. Firearms sales grew at an unprecedented pace in 2020. In addition to brick and more sales, more and more firearms dealers bring their products online. Whether on or offline, firearm sales must be compliant with state and federal laws, including data storage and security. At E4473, we believe that data security is the most important issue facing firearms dealers in 2021 and following; in part because the ATF requires it but also because, even in the absence of regulations, your reputation demands it. Since the ATF digital requirements are the minimum standard with which you must comply, let’s take a closer look. Firearms Acquisition and Disposition Record Storage ATF Requirements: Transactions must be completed entirely in a digital environment, in accordance with ATF Ruling 2016-2 and Form 4473s must be saved in an unalterable format. Electronic firearms acquisition and disposition records may be stored on a computer server or device owned and operated by the licensee provided that the server is located within the United States or its territories. E4473 Features Meet & Exceed: E4473 operates with a five-star security protocol, including document encryption, storage encryption, and two-factor authentication. E4473 offers the ultimate solution, capturing customer data, and storing the information securely on our remote servers. Data Security ATF Requirements: A filter or wall must be created to make sure that Form 4473s for completed transactions are stored separately from Form 4473s where the transaction was not completed. Each licensee must maintain its stored e-Form 4473 on a separate/partitioned database that cannot be intermingled with another licensee’s. E4473 Features Meet & Exceed: Our 24/7 monitoring service is included with each of our digital storage packages to protect against attacks. All data, for every E4473 user account is stored within a secured, separate database so that data from separate accounts can’t be intermingled. Data Backup ATF Requirements: The system must back up its stored Form 4473s upon the completion of a transaction. When a transaction is stopped before completion, the system must save the partially complete Form 4473. The storage system must back-up the stored e-Form 4473 on at least a daily basis to protect the data from accidental deletion or system failure. E4473 Features Meet & Exceed: Our databases are backed up on a daily basis. During the completion process, the E4473 intake system prompts users to click “Save & Close”. If a user cancels, they’ll get the following warning, “You’re about to cancel, are you sure?” E4473 uses many layers of high level security to validate and verify that your data is protected. Using E4473 to complete Form 4473 ensures that you are both fully compliant with ATF regulations and secure from criminals who want to steal your data. E4473 is the first solution to offer FFLs unmatched data security now and into the future. When you use E4473, data security is one thing you can check off your list with confidence.
A primary responsibility of the Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF) is ensuring that firearms dealers engage in their business in compliance with the law. “Federal firearms licensees (FFLs) must comply with the Gun Control Act (GCA) of 1968 and its implementing regulations. This helps protect the public by preventing illegal firearm trafficking and ensuring the successful tracing of crime guns back to the first retail purchaser.” One of the ways the ATF ensures compliance is with regular inspections at limited times and for limited purposes. They may conduct an annual compliance and recordkeeping inspection under the GCA, without a warrant, once during any 12-month period. This is the ATF inspection FFLs are most likely to encounter and the one that will be addressed in this article. The Firearms Inspection Process (ATF) Inspections occur without notice at the firearms dealer’s place of business during regular business hours by an industry operations investigator (IOI). During the inspection, the IOI is responsible for the following tasks: Reviewing business operations Evaluating security measures Verifying compliance Inventorying firearms Reviewing the bound book (A&D record) Reviewing ATF forms, including Form 4473 If violations are found, the inspector reviews them with the firearm’s dealer and explains the necessary corrections. In more than half of the inspections, there are no violations and firearms licenses are revoked less than 1% of the time. In rare instances where an FFL doesn’t respond to the violations report, a warning letter or warning conference will follow. (source) Common Questions About ATF Inspections Why did they choose my gunshop? You were chosen because of where you are in the cycle of inspections. The ATF’s goal is to inspect all FFLs on a three- or five-year basis; however, a study by the USDOJ in 2013 found that the ATF did not meet its goal resulting in over 58 percent of FFLs not being inspected within 5 years. (source) The cycle you’re in depends on whether you operate in a “source” or “non-source” state; the former being those where crime guns are first purchased, and the latter where crime guns have traveled. The ATF also prioritizes high-risk FFLs for compliance inspections. If you live in a non-source state and have a low denial ratio, you’ll be inspected less often than if you live in a source state and are located in a high crime area. Why didn’t the IOI call to make an appointment? The IOI prefers to make an appointment with you because that makes their job easier. They know you’ll be at your place of business and that you’ll be prepared for their visit. But, they aren’t legally required to make an appointment. They can just show up, and as long as they do that during regular business hours, you must allow them in. What records is the ATF allowed to review? The ATF is only allowed to inspect your firearms records and inventory. They’re not allowed to inspect records related to any other aspect of your business. What happens if I have violations? “If an IOI finds violations during an FFL inspection, ATF has several ways to guide the FFL toward correcting those violations and ensuring future compliance. These methods include issuing a report of violations, sending a warning letter, and holding a warning conference (or meeting) with the industry member.” (source) But it doesn’t need to get that far. In fact, with proper preparation, you can be one of the 53% of FFLs who have no violations whatsoever. How To Prepare For An ATF Inspection Be meticulous about paperwork. This is the biggest category for ATF violations by far. The most common record-keeping violations are: Failure to document the buyer’s ID Failure to verify buyers residence Failure to record the NICS contact information Improperly identifying a firearm on Form 4473 Failure to ensure that the buyer properly completed Form 4473, Section A Buyer leaves your shop before Form 4473 is complete Discrepancies between your inventory and bound book Absence of paperwork for multiple handgun sales (source) Don’t mishandle the background check. It should go without saying, but make sure you initiate it. Then wait until the background check is completed, or the NICS time has elapsed, to transfer the firearm. Don’t sell to someone you have reason to believe is prohibited from owning a gun. If there’s a waiting period in your state, make sure you observe it. The best way to prepare for an ATF inspection is to have tools and processes that ensure that you’re in compliance on a day-to-day basis. Once you’ve been contacted by the IOI and an appointment has been made, take the time to get your records in order and make sure that everything the inspector needs is prepared before his or her visit, including a firearms inventory and an audit of your bound book. If you’re storing records electronically, make sure your variance is on hand and that the inspector can access your digital records in read-only format. Many of the most common violations occur with Form 4773. When you use E4473, you can be assured that you are 100% compliant with ATF regulations, 100% of the time.
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