Recently, in the case of Sundance Associates, Inc. v. Reno, 139 F.3d 804 (10th Cir. 1998), the court held that the "secondary producer" category on 28 CFR 75 was unlawful expansion on the definition of "producer" under 2257 and was therefore invalid, however the Sundance decision is presently only binding within the 10th Federal Circuit (this includes the states of Colorado, Kansas, New Mexico, Oklahoma, Utah & Wyoming). Based on that decision, at least in the 10th Circuit, only "primary producers" are required to create and maintain records.
Since the Sundance decision does not bind other federal circuits in other regions of the country, federal courts in all the other states which lie outside the 10th Circuit might well analyze the law differently and come to a contrary decision. The consequence is that anyone located outside the 10th Circuit states runs a risk of violating the law by not following the letter of the record keeping requirements as set forth in 28 CFR 75.
Taken from:
http://www.theadultwebmaster.com/leg...r/2257_3.phtml