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ATF reverses rule targeting federal gun shop sales licenses


The Biden administration reversed a much-criticized policy that required inspectors to revoke federal firearms licenses for gun shops because of certain paperwork errors or anomalies as part of a “zero tolerance” approach.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) voluntarily rescinded the rule after a lawsuit by Austin, Texas gun shop owner Michael Cargill, an outspoken gun rights advocate, who argued that the policy impedes access to firearms and represents an obstacle to the right to own firearm.

“I literally neutered the ATF myself,” Cargill told Fox News Digital.

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FAR-15 style rifles are on display for sale in a gun shop. (Reuters/Bing Guan)

Cargill brought the case with support from the Texas Public Policy Foundation (TPPF) and America First Legal.

Under the rule, issued in 2021 by the Biden administration, a federal firearms license (FFL) holder can have his license revoked the first time he “willfully” violates several provisions, including falsifying records, such as a firearms transaction form.

The rule was aimed at curbing gun crime. However, critics say it is being used to punish gun dealers for minor and honest mistakes in paperwork. TPPF cited random errors when filling out forms, such as writing “USA” in the “county” field on a background check form.

Fox News Digital reached out ATF.

Matt Miller, senior attorney for TPPF and lead attorney on the case, said the Biden administration’s zero-tolerance approach has been “devastating” for businesses.

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Semi-automatic shotguns are displayed for sale on the shelves at the McBride Guns Inc. store. in Austin, Texas on August 25, 2023. (Brandon Bell/Getty Images)

“Many gun shops were forced to close due to the illegal terms of the old executive order,” he said in a statement. “The new order effectively reinstates the old enforcement guidelines, meaning gun shops don’t have to live in fear of making honest mistakes.”

Cargill previously won the case discussed earlier US Supreme Court which overturned the federal ban on bump stocks.

“There are 100 different ways buyers can go wrong with the paperwork when you walk into a gun store,” he said. “In this terminology, if we let them go in and inspect the hospitals and they say ‘They made a mistake in the hospital.’ Whether it’s a doctor or radiology, we’re going to close the whole hospital.”

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“Nobody’s doing it. No other industry is under that kind of pressure,” Cargill added.



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