Although it's illegal to "knowingly" sell against those rules, most buyers don't live by the "don't ask, don't tell" methodology. So in a lot of cases (don't have statistics on it), sellers will want to verify the buyer's home state, and probably even keep a receipt with the name incase the gun is used in a crime, and the ATF comes knocking at the buyer's door.
http://www.washingtontimes.com/news/2015/feb/11/federal-cour...
...the ATF comes knocking at the buyer's door.
I think you meant the seller's door there.Removing the seller removes supply and leaves demand in place, making illegal sales more profitable (and eliminating part of your competition); removing the buyer removes demand, making the supply less valuable (and possibly putting you out of business).
In the scenario of a transaction not documented in compliance with law, you wouldn't know where the buyer lives.