I operate a tiny auction site on the Internet that does not charge any fees for any of the services it performs (it is all automatically programmed). Yesterday, I received a cease and desist order from the State of Tennessee stating that I may be acting as an auctioneer or auction firm without possessing a valid license issued by the State Auctioneer Commission. Does this apply to "the Internet" as well?

 Jurisdictional issues with respect to the internet can be very complicated.  However, a basic principle seems to be that with respect to website, that the state where the site is run/operated/owner resides (especially if they are the same) will have jurisdiction of a party.  For example, most states (including Tennessee) have been grappling with sales tax collections from online sales.  This issue has usually been resolved in favor of the state when the retailer has a "bricks and mortar" presence in the state such that the state can exercise jurisdiction.  Applied to your matter, it is most likely the State has jurisdiction over you and your business and therefore can require you to comply with applicable licensing requirements.  This answer is for general informational purposes only and is not intended to constitute legal advice or a recommended course of action in any given situation. This answer is not intended to be, and should not be, relied upon by the recipient in making decisions of a legal nature with respect to the issues discussed herein. The recipient is encouraged to consult independent counsel before making any decisions or taking any action concerning the matters in this answer. This answer does not create an attorney-client relationship between the author (John R. LaBar)/Henry, McCord, Bean, Miller, Gabriel & LaBar, P.L.L.C. and the recipient.