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The firearms industry trade group, the National Shooting Sports Foundation, and two Arizona gun sellers argued that the administration overstepped its legal authority in the 2011 regulation, which applies to gun sellers in California, Arizona, New Mexico and Texas.
But the three-judge panel of the U.S. Circuit Court of Appeals for the District of Columbia said that the requirement was "unambiguously" authorized under the Gun Control Act of 1968.
The challengers argued that the requirement unlawfully creates a national firearms registry, but the court said because it applies to a small percentage of gun dealers, it doesn't come close to creating one.
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