Explore The NRA Universe Of Websites

NRA Files Lawsuit Challenging ATF’s “Engaged in the Business” Rule

Monday, July 22, 2024

NRA Files Lawsuit Challenging ATF’s “Engaged in the Business” Rule

The National Rifle Association of America (NRA) has filed a lawsuit challenging the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) “Engaged in the Business” Final Rule. The ATF’s Final Rule unlawfully redefines when a person is “engaged in the business” of dealing in firearms and therefore required to be federally licensed. This new lawsuit is being filed on the heels of recent U.S. Supreme Court decisions that have reined in executive branch agencies from acting outside of statutory authority.

“The ATF’s Final Rule stands to turn countless upstanding and well-intending citizens into criminals for exercising their constitutional rights,” said Randy Kozuch, Executive Director of the NRA Institute for Legislative Action (NRA-ILA). “When ATF released this Final Rule, NRA promised to use every means necessary to stop this egregious interpretation of the law. Now that the Supreme Court’s recent decisions in Loper Bright, Cargill, and Rahimi make clear that the ATF does not have unfettered authority to arbitrarily restrict NRA Members’ rights to buy and sell firearms, the NRA is fighting back.”

NRA, along with two individuals, Don Butler and David Glidewell, filed the lawsuit challenging the ATF’s Final Rule in the U.S. District Court for the Northern District of Alabama. The complaint alleges that the Final Rule violates the Administrative Procedure Act because it exceeds the ATF’s statutory and jurisdictional authority and is arbitrary and capricious; violates the Fifth Amendment because it is unconstitutionally vague; violates the Second Amendment by infringing the rights to keep, bear, buy, and sell arms; and violates the Separation of Powers, non-delegation doctrine, and Take Care Clause by usurping legislative powers and prohibiting lawful conduct by executive fiat.

Under the Firearms Owners’ Protection Act (FOPA) of 1986 (which amended the Gun Control Act of 1968), someone is “engaged in the business” of dealing in firearms if that person “deal[s] in firearms as a regular course of trade or business with the principal objective of livelihood and profit through the repetitive purchase and resale of firearms.” The 2022 Bipartisan Safer Communities Act (BSCA) altered that definition by replacing “livelihood and profit” with “to predominantly earn a profit.” The BSCA did not alter FOPA’s exclusion for “a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for a hobby, or who sells all or part of his personal collection of firearms.”

On April 19, 2024, ATF promulgated the Final Rule “to clarify[] the criteria for determining when a person is ‘engaged in the business.’” The Final Rule provides that “there is no minimum threshold number of firearms purchased or sold that triggers the licensing requirement” and that “there is no minimum number of transactions that determines whether a person is ‘engaged in the business’ of dealing in firearms. For example, even a single firearm transaction or offer to engage in a transaction . . . may require a license.” The Final Rule also excludes firearms acquired for “personal protection” from the firearms that may be sold from a personal collection without a license. The ATF’s Final Rule thus rewrites the law, contradicts Congress’ statutory language, and adds confusion rather than clarification.

The case is named Butler v. Garland, and the complaint can be read here.

IN THIS ARTICLE
National ATF NRA Legal litigation
TRENDING NOW
Out-of-Touch Mayor Learns the Hard Way Michiganders Like Guns and Dogs

News  

Monday, March 2, 2026

Out-of-Touch Mayor Learns the Hard Way Michiganders Like Guns and Dogs

“The NRA is going to be mad at me.”  So said David LaGrand (D), mayor of the second largest city in the state of Michigan. We don’t get mad, however, when firearm prohibitionists reveal their true ...

Gunmakers Petition High Court to Halt Illegitimate Attacks on Firearms Industry

News  

Monday, March 2, 2026

Gunmakers Petition High Court to Halt Illegitimate Attacks on Firearms Industry

In recent months, NRA-ILA has impressed upon gun owners the severe danger to Second Amendment rights posed by efforts to undermine the Protection of Lawful Commerce in Arms Act (PLCAA). 

NRA Announces Third Lawsuit Challenging the National Firearms Act

Thursday, February 26, 2026

NRA Announces Third Lawsuit Challenging the National Firearms Act

Today, the National Rifle Association announced the filing of a third lawsuit challenging the constitutionality of the National Firearms Act of 1934 (NFA). The case, Roberts v. ATF, was filed in the U.S. District Court for ...

Virginia Gun Owners Face Magazine Confiscation!

Monday, February 2, 2026

Virginia Gun Owners Face Magazine Confiscation!

Astute Virginia gun owners anticipated terrible gun control legislation from the 2026 General Assembly. Still, some may be shocked to learn that anti-rights zealots in the Virginia Senate have advanced a bill to CONFISCATE standard capacity firearm ...

Iowa: Senate Strips Carry Protections for Iowans, Expands Its Own Authority

Tuesday, February 24, 2026

Iowa: Senate Strips Carry Protections for Iowans, Expands Its Own Authority

Yesterday, on the Senate floor, SF 2263 was amended, at the last minute, to remove key provisions that would have expanded protections for law-abiding gun owners before the bill ultimately passed. Click the Take Action button ...

Virginia: Gun Bill Updates As Crossover Deadline Arrives

Tuesday, February 17, 2026

Virginia: Gun Bill Updates As Crossover Deadline Arrives

Today, February 17th is the legislative crossover deadline in Virginia, and any bills that have not left their chamber of origin by the end of the day are considered dead for the session.

California: Lawmakers Introduce New Bill that Would Censor Private 3-D Printers

Tuesday, February 24, 2026

California: Lawmakers Introduce New Bill that Would Censor Private 3-D Printers

Last week marked the deadline for bill introductions in the California Legislature. As we anticipated in our previous alert, anti-gun lawmakers used this opportunity to file additional measures aimed at further restricting the rights of ...

Virginia: Multiple Gun Control Bills Advance in Senate

Tuesday, January 27, 2026

Virginia: Multiple Gun Control Bills Advance in Senate

On Monday, January 26th, the Senate Courts of Justice Committee advanced a slate of gun control bills targeting semi-automatic firearms, standard capacity magazines, carry rights, home storage, and more.

Oregon: Ballot Measure 114 Override Bill Passes House

Wednesday, February 25, 2026

Oregon: Ballot Measure 114 Override Bill Passes House

This afternoon, House Bill 4145, the Ballot Measure 114 override bill, passed out of the House and will be transmitted to the Senate for further consideration.

North Carolina: Permitless Carry Veto Override Vote Postponed

Tuesday, January 13, 2026

North Carolina: Permitless Carry Veto Override Vote Postponed

Today, the North Carolina House of Representatives rescheduled this morning’s veto override on Senate Bill 50, Freedom to Carry NC, to February 9, 2026.

MORE TRENDING +
LESS TRENDING -

More Like This From Around The NRA

NRA ILA

Established in 1975, the Institute for Legislative Action (ILA) is the "lobbying" arm of the National Rifle Association of America. ILA is responsible for preserving the right of all law-abiding individuals in the legislative, political, and legal arenas, to purchase, possess and use firearms for legitimate purposes as guaranteed by the Second Amendment to the U.S. Constitution.