Ebay Corporation Requires legislative support from Congress to combat the escalating issue of commercial theft.
Article:
Shoplifting's Escalation: Why It's Time to Stop Organized Retail Crime
Yeah, you've probably seen those videos on the local news of brazen shoplifters swiping goods without a care in the world, right? Well, it's gotten so bad that stores are installing plastic lockers to prevent pilfering, making it a hassle to grab a simple razor or bottle of soap.
But the costs of this organized retail theft (ORC) are far more than a minor inconvenience. Retailers lose hundreds of millions of dollars in inventory every year due to theft. To combat this problem, they're shelling out more on security, technology, and insurance – costs that ultimately get passed on to consumers.
But retailers can't solve the problem on their own. Inflation and now tariffs are pushing up the cost of goods, and Americans need a solution that lets them shop in stores where goods are readily available without driving up prices even further. Retailers, law enforcement, and online marketplaces like eBay (where I work) must team up to find a way to eradicate organized retail crime.
The Scope of the Problem
Organized retail crime is a coordinated effort by groups of thieves to steal large amounts of merchandise from stores. They typically resell the goods at flea markets or to known "fences."
It's not just a myth – headlines show it's a problem from coast to coast. Recent data supports these anecdotes as well. Retailers reported a whopping 93% increase in the average number of shoplifting incidents per year in 2023 compared to 2019, and a 90% increase in dollar loss due to shoplifting over the same period, according to a December report from the National Retail Federation. 75% of those polled say organized retail crime is more of a concern now than ever before. Worse, the increase in thefts has sparked a surge in violence.
To prevent theft, retailers have taken several measures. Limiting in-store stock, installing those pesky plastic lockers, and even cutting hours or closing stores altogether are common tactics. But while these measures might help lower theft, they also make shopping a pain in the ass and drive up prices at a time when Americans are already struggling with higher costs.
The Path Forward
At eBay, we've firsthand experience with the challenges of fighting organized retail crime. For almost 20 years, we've partnered with retailers, law enforcement, and elected officials to identify and dismantle crime rings.
Our industry-leading initiative, Partnering with Retailers Offensively Against Crime and Theft (PROACT), enhances cooperation and partnerships between e-commerce companies, retailers, law enforcement, and politicians. In 2023 alone, PROACT helped prevent an estimated $50 million from being stolen at CVS locations.
Solving this problem requires collaboration between e-commerce companies, retailers, law enforcement, and even Congress. Law enforcement and prosecutors need the resources to go after the sophisticated criminal syndicates behind organized retail crime. Thankfully, Iowa Republican Senator Chuck Grassley and Nevada Democrat Senator Catherine Cortez Masto have introduced the Combating Organized Retail Crime Act (CORCA) to address the escalation in theft, fraud, and other property crimes targeting retail stores and the supply chain.
What CORCA Does
CORCA strengthens legal tools for law enforcement and establishes the Organized Retail and Supply Chain Crime Coordination Center within the Department of Homeland Security to combat organized retail and supply chain crime. This center would coordinate response efforts at the federal, state, and local levels. It would also collaborate with private industry on information sharing and investigations.
Passing this bill is essential to stopping organized retail crime and reducing prices for consumers. With aid from Congress and continued partnership between retail, law enforcement, and prosecutors, we can finally put an end to organized retail crime and make shopping more convenient for everyone. Though, if I were a manufacturer of plastic lock boxes, I might be a bit hesitant about this progress.
Christian Hardman heads eBay's North America Criminal and Regulatory Investigations team.
- Despite the rising concern over organized retail crime, exemplified by the 93% increase in shoplifting incidents and a 90% increase in dollar loss according to the National Retail Federation in 2023, initiatives like eBay's PROACT are striving to eradicate this issue.
- The escalation in shoplifting has impacted the retail industry significantly, with retailers losing hundreds of millions of dollars yearly due to theft and shifting costs to consumers through increased security, technology, and insurance expenses.
- To combat this issue, e-commerce companies, retailers, law enforcement, and politicians must collaborate closely to identify and dismantle crime rings, as demonstrated by eBay's industry-leading PROACT program.
- The Combating Organized Retail Crime Act (CORCA), introduced by Senators Chuck Grassley and Catherine Cortez Masto, aims to provide law enforcement with the resources necessary to tackle sophisticated criminal syndicates behind organized retail crime.
- The establishment of the Organized Retail and Supply Chain Crime Coordination Center within the Department of Homeland Security, as proposed by CORCA, would foster unprecedented cooperation between federal, state, and local levels, as well as private industry, to combat organized retail and supply chain crime, ultimately reducing prices for consumers.
