September 9, 2010
NEW YORK – The Furniture Producers Association of America (FPAA) asked Congress today to pass tougher legislation against used furniture sales.
The FPAA showed that the furniture industry lost $1.9 billion last year to unauthorised resale of furniture.
“A designer of a chair receives no royalty or residual on a used sale,” an FPPA spokesperson told reporters. “How is that designer supposed to feed his or her family? What’s the motivation to continue to make comfortable beautiful seating? We need to act now before the furniture industry is ruined.”
An explosion in used sales powered by Internet sites like Craigslist and eBay is blamed for the damage to the furniture industry. In the past 10 months, Ikea has already slashed 5,000 jobs globally after sales dropped 7% below budget. The industry has started to consider ways to deactivate furniture after first sale.
FPAA chief executive Larry Cosmo put it bluntly “We hope people understand that when furniture is bought used we get cheated,” he added. “I don’t think anyone wants that so in order for us to make strong, high-quality furniture we need protections from both within the industry and without.”
Lobbyists have asked Congress to make it illegal to give furniture to unlicensed third parties without permission. Permission would be required whether the furniture is being sold or just given away.