NRF backs legislation to prevent organized retail theft

WASHINGTON The National Retail Federation welcomed legislation intended to help law enforcement fight the $30 billion-a-year problem of organized retail crime, saying introduction comes at a time when the nation’s economic crisis has more shoppers turning to “bargain” merchandise they might not realize is stolen or tainted.

“Organized retail crime is a rapidly growing problem, especially as challenging economic times increase the market for stolen merchandise,” NRF VP loss prevention Joseph LaRocca said. “Retailers already struggling to survive are seeing their inventory disappear in increasing amounts, and the goods end up at flea markets or on the Internet at prices that put temptation into the path of cash-strapped consumers trying to stretch every dollar. Losses from these crimes ultimately drive up the price of legitimate merchandise at a time when consumers can least afford it, and do serious damage to our nation’s already weakened economy. The legislation being introduced today shows that Congress is ready to stop treating the perpetrators of ORC like petty shoplifters and recognize them for the professional criminals they really are.”

Three major bills on ORC were introduced today: the Combating Organized Retail Crime Act of 2009, sponsored by Senate Majority Whip Richard Durbin, D-Ill.; the Organized Retail Crime Act of 2009, sponsored by Representative Brad Ellsworth, D-Ind.; and the E-Fencing Enforcement Act of 2009, sponsored by House Judiciary Committee Crime, Terrorism and Homeland Security Subcommittee Chairman Bobby Scott, D-Va. The measures are similar to legislation first introduced last summer.

All three bills would address organized retail crime, in which groups of professional thieves steal merchandise from stores on a large scale and resell the goods in venues ranging from flea markets to the Internet. ORC rings typically target consumer items that are in high demand but easy to steal like infant formula, razor blades, cosmetics and gift cards, along with more expensive items such as DVDs, CDs, video games, electronics or designer clothing. In addition to the financial loss, ORC can present a public health hazard because items like infant formula or over-the-counter medications might be improperly stored or mislabeled.

While the bills offer different approaches to combating ORC, taken together they would define ORC as a federal crime for the first time, require review and necessary amendments of federal sentencing guidelines for criminals convicted of ORC, require operators of online auction sites to cooperate with retailers and law enforcement officials in their investigations of ORC, and, in some cases, hold auction sites responsible for the sale of stolen merchandise that could have been prevented.