Congress to Hold Hearing on Organized Retail Crime
WASHINGTON, September 16, 2008 – Organized retail crime – a growing problem that costs retailers and consumers as much as $30 billion a year – will be the subject of a congressional hearing in Washington next week.
The House Judiciary Committee’s Subcommittee on Crime, Terrorism and Homeland Security is scheduled to address H.R. 6713, the “E-fencing Enforcement Act of 2008”, H.R. 6491 and the “Organized Retail Crime Act of 2008” at 4 p.m. Monday in B370-B Rayburn House Office Building, Washington D.C.
“E-fencing is quickly becoming thieves’ preferred method for disposing of stolen retail merchandise,” NRF Vice President for Loss Prevention Joseph LaRocca said. “By hiding behind the anonymity of the Internet, they can make more money with less risk of getting caught than selling to a stranger on a street corner who might turn out to be a police officer. This bill would lift that cloak and help law enforcement put on-line criminals where they belong – behind bars.”
H.R. 6491, the Organized Retail Crime Act of 2008, would define ORC and make it a federal crime for the first time. The measure was introduced July 15 by Representative Brad Ellsworth, D-Ind., a former county sheriff who dealt with the issue during his career in law enforcement before being elected to Congress, with Judiciary Committee member Representative Jim Jordan, R-Ohio, as the lead co-sponsor. The bill would also establish that operation of auction sites could be considered “facilitation” of organized retail crime unless the operator could show specific steps had been taken to ensure goods being sold were not obtained by theft or fraud. It would also require site operators to cooperate with retailers and police, and allow retailers to sue over the sale of stolen merchandise.
H.R. 6713, the E-Fencing Enforcement Act of 2008, was introduced on July 31 by Representative Bobby Scott, D-Va., chairman of the House Judiciary Committee’s Subcommittee on Crime, Terrorism and Homeland Security. Subcommittee member Representative Artur Davis, D-Ala., is the lead co-sponsor of the bill. The bill would require on-line auction operators to retain information about high-volume sellers and provide that information to “a person with standing” once a valid police report is filed. The “person with standing” could be a retailer if they filed a signed police report, or a law enforcement officer once police have received a valid report.
LaRocca said criminals are able to receive as much as 70 percent of an item’s retail value when selling on-line, compared with about 30 percent when selling the same item on a street corner or at a pawn shop, and the anonymity of the Internet reduces the chances of apprehension.
To arrange interviews, contact NRF Vice President for Government Affairs Public Relations J. Craig Shearman at (202) 626-8134 or shearmanc@nrf.com.
Organized retail crime amounts to between $15 billion and $30 billion annually, according to the FBI. Crime rings typically target consumer products that are in high demand and easy to steal, ranging from razor blades to consumer electronics. Once stolen, the goods are resold at pawn shops, flea markets, swap meets and Internet auction sites. Organized retail crime ultimately drives up prices for consumers, and can pose a health and safety threat when thieves falsely extend expiration dates or repackage and re-label items such as infant formula or medications.
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ORC Hearing Written Testimony of Witnesses |
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