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

by
posted on July 23, 2024
** When you buy products through the links on our site, we may earn a commission that supports NRA's mission to protect, preserve and defend the Second Amendment. **
NRA ILA Logo

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.

Latest

Lede Divers
Lede Divers

A Deep Dive into Late-Season Divers

When he was 12 the author shot a limit of ring-necks when he was hunting for wigeon. It wasn’t the last time divers turned a slow day of duck hunting into a memorable one. The season might be over, but take a step back into the very end of the season with Scott Haugen, as he takes on some divers.

New for 2026: Knight & Hale Deer Call Lineup

Knight & Hale Game Calls, has launched its latest line of deer calls, a collection which includes the EZ-Grunter, EZ-Grunter Xtreme, Death Chamber and Ultimate Rattle Bag. Read on for a detailed description of each.

#SundayGunday: Taurus Raging Hunter 350 Legend

On this week's #SundayGunday, we're taking a look at a capable hunting revolver that’s chambered in a caliber you’re more likely to see in a rifle: the 350 Legend. That’s right, Taurus has released their large-frame Raging Hunter in the whitetail-thumping 350 Legend cartridge. Learn more about it in this exclusive video.

Recipe: Deep-Rooted Venison Stew

Several friends and I often circle back to the same campfire debate about which wild game makes the best stew. Mule deer usually leads the pack, with moose close behind, but any well-handled game meat can stand out when you build the right layers of flavor. The real magic starts long before the broth simmers. It comes from the vegetables and mushrooms you choose.

61-Year-Old Elk-Hunting Dream Fulfilled in Michigan

Michigan elk hunters faced challenging weather and storm-ravaged terrain to harvest 153 elk in 2025. That didn’t deter Bruce Nelson of Hastings, Mich. He applied for an elk license every year Michigan has held a drawing.

New for 2026: Blaser R8 Professional 2.0

The Blaser R8 Professional 2.0 promises to be the modern evolution of the iconic straight-pull rifle. The rifle features a new, ergonomically optimized vertical pistol grip for increased comfort and improved control when firing, and its ambidextrous palm swell fits both right- and left-handed shooters.

Interests



Get the best of American Hunter delivered to your inbox.