Verdict: Busted! (with caveats)

Claim

“The internet is a loophole — you can buy guns online with no background check.”

Reality

Firearms purchased online (from a licensed dealer) must go through the same background check process as any other sale. When you buy a gun from an online FFL (federally licensed dealer), the firearm is not shipped directly to your door. It is shipped to a local FFL of your choosing, where you will appear in person, fill out ATF Form 4473, and undergo an FBI NICS background check before the gun is transferred to you. This is federal law – it’s not optional or a “loophole.” If your state imposes any waiting period, you’ll need to observe that as well before taking the firearm home. In short, an online dealer sale always ends with you at your local gun shop, doing the standard paperwork and background check, just as if you bought from that shop’s inventory.

Private sales are different. Federal law does not require background checks for a face-to-face firearm sale between two unlicensed individuals who are residents of the same state (as long as the seller has no reason to believe the buyer is prohibited from owning guns). However, state laws may impose their own requirements – a number of states now require background checks on all gun sales, including private transactions. If the buyer and seller reside in different states, federal law does come into play: you cannot directly sell or ship a firearm to an unlicensed person in another state. Any interstate private sale must be processed through an FFL in the buyer’s state, who will conduct the transfer (with Form 4473 and NICS) just like a dealer sale. Direct interstate gun sales between private parties are illegal under the Gun Control Act. Always verify the current laws in your state (and any state involved) because regulations do change over time.

So who needs to be licensed as a dealer? In 2022, Congress broadened the legal definition of “engaged in the business” of dealing in firearms as part of the Bipartisan Safer Communities Act, and in 2024 the DOJ and ATF implemented a new rule to clarify the criteria. The short version: if you are regularly selling guns with the primary goal of making a profit, you are likely “engaged in the business” and must obtain an FFL (regardless of whether those sales occur online, at gun shows, or elsewhere). The 2024 ATF rule laid out specific factors for this determination (e.g. volume and frequency of sales, intent to profit, etc.). Note that as of late 2024, portions of that new rule have been temporarily enjoined by a federal court and are not being enforced pending litigation. Important: even with the injunction, the underlying federal law still prohibits dealing in firearms without a license. The rule’s status may continue to evolve with ongoing lawsuits, so keep an eye on updates – but the baseline remains that if you’re selling guns as a business, you need to be licensed.

Timing matters. Most NICS background checks are completed within minutes; about 90% of checks return an instant determination. However, a small percentage of transactions get delayed for further review (roughly 10% of checks, and only about 4% are delayed more than three days). Under federal law, if the FBI has not resolved a background check after three business days, the FFL is allowed to proceed with the sale by default (this is often called the “default proceed” or “3-day rule”). In practice, many states have laws or policies that prevent a default proceed – they require the dealer to wait until an approval is confirmed, or extend the waiting period beyond three days. Additionally, some states impose a mandatory waiting period on all gun purchases, separate from the NICS timing. For example, California by law requires a full 10-day waiting period between the purchase of any firearm and the delivery to the buyer, even if the background check is instant. Always be mindful of any state-specific waiting period or permit-to-purchase requirement that may apply on top of the federal background check process.

Why it lives

• Simplified sound bites. Headlines and political talking points often oversimplify the issue, blurring the distinction between an online sale from a licensed dealer (which always involves a Form 4473 and background check at an FFL) and a same-state private sale (which may not require a check under federal law, depending on state law). The phrase “internet loophole” gets thrown around, but it’s often used as shorthand for the unregulated private sale scenario – not an actual exemption for purchases from online retailers.
  
  

• “Gun show/online loophole” confusion. The public often hears about loopholes at gun shows or online. This refers to sales by unlicensed sellers (who set up at gun shows or advertise online) that don’t require background checks under federal law. It does not mean licensed dealers can skip the background check. All FFLs, whether at a brick-and-mortar store, a gun show, or selling over the internet, must run checks – there’s no exemption for the venue. The term “loophole” persists because those private sales (including many initiated online via classifieds or forums) remain a gap in the law in many states.
  
  

• Rapid legal changes. The rules around who must have an FFL (i.e. what it means to be “engaged in the business” of selling guns) have been in flux. The 2024 regulatory changes and subsequent court challenges created confusion. One week you hear the ATF is tightening rules on unlicensed sellers; the next, you hear parts of that rule got blocked in court. This evolving situation feeds misunderstandings and exaggerated claims. People latch onto outdated information or extreme interpretations during these shifts.
  
  

How online dealer purchases actually work

1. You find a gun for sale from an online FFL (licensed seller) via their website or an online marketplace. You purchase it online (much like any e-commerce transaction).
   
   

2. The seller ships the firearm to your local FFL of choice (you provide your dealer’s info during the purchase). The gun is not shipped directly to you or your house – it must go to a federally licensed dealer, where the transfer will take place.
   
   

3. You visit the FFL to complete the transfer. At the gun shop, you fill out ATF Form 4473 with your information, and the dealer runs a NICS background check (or state equivalent) using that form. The firearm is transferred to you only after you pass the background check (and satisfy any additional state requirements, like waiting periods or permits). If you are delayed or denied by NICS, the dealer will not hand over the gun unless and until the check is resolved in your favor (or the lawful waiting period expires without a denial, per the “default proceed” rule). Essentially, buying online ends the same way as buying locally – with you undergoing the standard checks at an FFL.
   
   

Private sales: the short course

• Same-state private sale (unlicensed persons): Under federal law, two private individuals who are residents of the same state can buy/sell a firearm between themselves without a background check, as long as the seller does not know (or have reasonable cause to believe) that the buyer is prohibited from owning guns. However, many states have closed this loophole by enacting universal background check laws. As of now, 18 states and Washington D.C. require all firearm sales, even between private parties, to go through a background check (typically by using an FFL as intermediary). Always double-check your state’s regulations because the federal allowance for private sales might not apply in your location.
  
  

• Interstate private sale: You cannot directly sell a firearm to someone who lives in another state (or buy one from an out-of-state private seller) without involving a licensed dealer. Federal law (18 U.S.C. § 922(a)(5)) requires that the gun be shipped to an FFL in the buyer’s state, where the buyer will complete a 4473 and NICS check before taking possession. In other words, any across-state-lines transaction must be handled like a dealer sale. A direct face-to-face interstate private transfer (or shipping a gun to an out-of-state stranger) is illegal.
  
  

• “Engaged in the business” = needs a license: If you start selling firearms on a regular basis with the principal motive of making profit, you’re likely viewed as a dealer under the law and you must be licensed – it doesn’t matter if you’re selling at gun shows, online, or out of your garage. The ATF and DOJ have made it clear: location doesn’t matter; your intent and activity do. If you repetitively buy and sell guns to turn a profit, you have to get an FFL and conduct background checks on buyers. Trying to operate as an informal, unlicensed gun dealer is a quick path to felony charges.
  
  

Field Test Plan (show your readers the process)

• Do an online purchase legally and document it. For a hands-on “myth busting” demo, actually buy a firearm online from a reputable seller and have it shipped to your local FFL. Take notes or video of each step (without disclosing personal info): ordering the gun, the FFL transfer process, etc. This will provide real-world evidence of the required background check.
  
  

• Show the paperwork (Form 4473). At the gun shop, photograph or scan key portions of the ATF Form 4473 (you can obscure personal details). Highlight where the form asks for the buyer’s identity and legal status, and the section where the dealer records the NICS call/response. Be sure to explain the outcomes: e.g. Proceed (approved), Denied, or Delayed. Also point out the new note on the revised 4473 that the transfer must occur within 30 days of the NICS check – after that, a new background check (and form) is required. This is evidence that the system isn’t open-ended: a background check has a limited window of validity.
  
  

• Include any state-specific steps. If your state has additional requirements, document those too. For example, in California the dealer would also process a state DROS entry and you’d fill out extra paperwork, then you’d wait 10 days before pick-up due to the mandatory waiting period. Show any state permits or purchase licenses if applicable. Detailing these steps reinforces that online gun buying is a regulated, multi-step process, not an instantaneous one-click delivery to your door.
  
  

Shop / Train Smarter (IronKells doctrine)

• Choose reputable dealers and shipping methods. When buying online, stick to well-known FFLs or established platforms. Ensure the seller will ship through standard, trackable carriers and insure the shipment. Before clicking “buy,” line up a reliable local FFL to receive the firearm – one with reasonable transfer fees and good communication. This avoids scrambling to find a dealer later.
  
  

• Know your state’s laws (no guessing). Gun laws vary widely by state, and you need to know the rules that apply to your location. Is your state one of the 18 that require background checks on all sales? Does it require a permit-to-purchase or firearm owner ID card (as about 10 states and DC do)? Is there a waiting period (around 13 states plus DC have one for at least some guns)? Are there exemptions for concealed carry permit holders? Do your homework on state and local laws before you buy or sell a gun. Misinformation can land you in legal trouble, so verify the current requirements with official sources (state websites, Giffords Law Center summaries, etc.).
  
  

• Keep your paperwork. Treat every firearm transaction like important paperwork – because it is. Save your purchase receipts, bills of sale, and transfer records. When you buy from a dealer, keep the receipt and even a copy of the 4473 if you can; when you sell a gun privately (where legal), it’s wise to draft a simple bill of sale for both parties and record the buyer’s info. Having a paper trail can protect you if a gun you sold is ever traced or if you need to prove lawful transfer. The ATF even provides a Personal Firearms Record pamphlet to log your firearm details by make/model/serial number. Maintaining these records as part of your “compliance package” means you can answer questions about your guns (or former guns) with confidence.
  
  

• Don’t drift into dealing. Be very careful about repeatedly buying and selling firearms without a license. If you start flipping guns for profit, you’re on a fast track to “engaging in the business” unlawfully. Read the ATF guidance on this topic (the pamphlet “Do I Need a License to Buy and Sell Firearms?” is a great resource) and err on the side of getting an FFL if your sales activity picks up. The penalties for unlicensed dealing are felony serious. Also, stay aware of the latest developments with the ATF’s 2024 rule – parts of it are on hold due to court injunctions, but that could change. In short, play it safe and legal: if in doubt, get licensed or scale back your sales.
  
  

Quick Answers

Q: Can I buy a gun online and have it shipped to my house?
A: No. Federal law requires that any firearm you purchase online be shipped to a local FFL, not directly to you. You’ll pick it up from the FFL after completing the Form 4473 and passing the background check. It will not be left on your doorstep like an Amazon package.

Q: What about buying from private sellers I meet online?
A: If both you and the seller live in the same state, federal law does not mandate a background check for a private sale (though check your state’s laws, because some states now require one). If you and the seller are from different states, the gun must go through an FFL – you can’t directly ship or transfer across state lines without a licensed dealer involved. In other words, an online-arranged sale across state boundaries has to be treated like a dealer sale under the law.

Q: What’s the “3-day rule” I keep hearing about?
A: That refers to the federal rule that if a NICS background check is delayed and not resolved within three business days, the dealer is legally allowed to proceed with the sale by default. This is meant as a balance so that buyers aren’t left in limbo forever. However, many states have enacted laws to override this and require a completed check (or a longer waiting period) before any transfer. So in those states, the “default proceed” after 3 days is not permitted. Always know your state’s policy – “three days” is a federal minimum standard, but your state can add more restrictions.

Q: Who exactly counts as “engaged in the business” of selling guns (and needs an FFL)?
A: Under federal law, it generally means you sell firearms with the predominant purpose of earning profit on a regular basis. The Bipartisan Safer Communities Act of 2022 updated the definition – you no longer need to be doing it as your primary livelihood; if you sell guns to predominantly make money, you need a license. In 2024, ATF issued a rule with specific guidelines and examples to flesh this out (like how many guns, how frequently, etc.). That rule is partly tied up in court challenges right now (a judge issued an injunction blocking it in certain jurisdictions), but the core law still stands. So if you’re frequently buying and reselling guns for profit, assume you need an FFL or you risk violating federal law.

Sources & Receipts

• ATF (FFL Quick Reference Guide): Explains that firearms bought online must be shipped to a licensed dealer and transferred under the same rules as any dealer sale (Form 4473 + NICS). Clarifies that an unlicensed person may transfer a firearm to another in-state resident (no federal check) but may not transfer to an out-of-state resident except via an FFL.
  
  

• FBI NICS: Overview of how the background check process works for gun sales and the limits of the system. Notes that when a person attempts to buy a firearm, the FFL contacts the FBI and the buyer fills out the ATF form; the FBI runs the check and if it cannot determine a result in three business days, the FFL may legally proceed with the transfer (unless prohibited by state law).
  
  

• ATF Form 4473 (2023–24 Revision): Details changes to the firearm transfer form. Notably, the revised form (post-2022) includes a 30-day limit on NICS validity – the dealer must certify that any transfer occurs within 30 days of the initial NICS contact. (After 30 days, a new background check is required.) It also added instructions about waiting periods for buyers under 21, reflecting new federal law.
  
  

• ATF FAQ – Unlicensed Transfers: ATF Q&A on private sales (Gun Control Act provisions). Confirms that federal law allows intrastate firearm transfers between unlicensed individuals without requiring a background check, but warns that state laws may impose additional requirements. Also underscores that any interstate transfer has to go through an FFL in the buyer’s state (it’s illegal for a private seller to directly send a gun to an out-of-state buyer).
  
  

• Giffords Law Center – State Background Check Laws: Summary of states that have gone beyond federal law. As of recent data, 22 states and DC have extended background check requirements to at least some private sales, with 18 states + DC enforcing universal background checks on all gun sales (including private transactions. Provides context on the patchwork of state laws closing the “private sale loophole.”
  
  

• Federal Register (April 19, 2024) – Final Rule on “Engaged in the Business”: The official DOJ/ATF rule notice implementing the Bipartisan Safer Communities Act’s expansion of who must be licensed. It redefines a firearms dealer as anyone devoting time and effort to selling firearms “to predominantly earn a profit,” replacing the older “livelihood and profit” phrasing. The rule’s intent is to bring more frequent sellers under the licensing requirement, thereby increasing background checks and record-keeping by those sellers.
  
  

• ATF – Engaged in Business Rule Page & Litigation Note: ATF’s guidance page on the 2024 rule, including a “Note on Pending Litigation.” It documents that in May 2024, a federal court issued a preliminary injunction stopping ATF from enforcing the new “engaged in the business” regulations against certain plaintiffs (including several states and gun-rights groups). In effect, parts of the rule are on hold as of 2024, illustrating the ongoing legal battles around the definition of a dealer.
  
  

• California DOJ – 10-Day Waiting Period: California Department of Justice FAQ confirming the state’s mandatory 10-day waiting period for all firearm purchases This is cited as an example of additional state-imposed requirements that go beyond federal law (California’s system requires every gun buyer to wait 10 full days after the background check before the firearm can be delivered, with very limited exceptions). This underscores that online or offline, a purchase in California will always involve this delay.