US Justice Department repeals Biden-era 'zero tolerance' policy for gun dealers

WASHINGTON (Reuters) -The U.S. Justice Department on Monday repealed a Biden-era "zero tolerance" policy which called for revoking the licenses of gun dealers who willfully committed serious violations such as failing to conduct background checks, an FBI spokesperson said.

The reversal of the policy, which was touted by the conservative Gun Owners of America group before any official government announcement was made, follows President Donald Trump ordering the department and the Bureau of Alcohol, Tobacco, Firearms and Explosives to conduct a wholesale review of all of the gun regulations implemented under his Democratic predecessor President Joe Biden.

Kash Patel, who is currently serving as both the FBI director and the acting ATF director, spoke to the members of the Gun Owners of America during their August meeting. He claimed falsely that the former head of the ATF during Biden's presidency wanted to take away people's Second Amendment right to bear arms.

The Gun Owners of America is one of the nation's most far-right gun-rights advocacy groups and has called for abolishing the ATF and purging gun sales records that law enforcement agents use to help solve crimes.

The zero-tolerance policy repealed on Monday called for the ATF, which regulates the firearms industry, to revoke the licenses of gun dealers if they willfully sold firearms to prohibited people such as convicted felons, failed to conduct background checks, falsified records or failed to respond to law enforcement requests to help trace firearms used to commit crimes.

Gun-control groups had supported the Biden-era policy, saying it served as an important tool toward cracking down on illegal straw purchasing and gun trafficking. 

The firearms industry was largely critical of it, saying it was leading the government to shut down gun shops over minor infractions uncovered during inspections.

Lawrence G. Keane, senior vice president of the NSSF, the Firearm Industry Trade Association, praised the decision to repeal the policy.

"This reckless policy throttled small businesses and drove many to shut down by threatening crippling administrative costs to fight against penalties for minor errors and infractions that were previously reconciled in good faith between ATF officials and law-abiding firearm retailers," Keane said in a statement.

Emma Brown, executive director for the gun-control advocacy group Giffords, said the repeal could lead to spikes in crime.

"Putting gun dealers who break the law back in business will increase crime," she said.

(Reporting by Sarah N. Lynch; Editing by Scott Malone and Stephen Coates)