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It is called a "loophole" because it allows someone to legally purchase a firearm without passing a background check, and the antis think that all sales should have a background check.
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loop·hole
ˈlo͞opˌ(h)ōl/
noun
1. an ambiguity or inadequacy in the law or a set of rules.
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As I posted on page one, advocates for the Brady Act deliberately excluded private sales because they knew the bill wouldn't pass without that exclusion. That's not a loophole.