Essentially, it will strip away much of the features that would give away the fact that a game was previously owned. Kotaku's main source also told them that employees are encouraged to put New copies of games below Pre-Owned copies.
Kotaku contacted EB Games for comment but has not heard anything back at the time of writing.
Since posting the news, Kotaku has gotten e-mails from people who claim to be EB Games employees, with most saying the report is true, and in some cases that the policy has been in effect in a particular store for more than a week.
One e-mail pointed out concern among staff about games that require codes for online play, as some customers might accidentially pick up a Used copy of a title, and go home to find they can't play it online.
Still, even in that e-mail the employee does admit that the stickers do still have USED and NEW on them, but didn't seem convinced it was enough to completely avoid problems for customers.