NRF Welcomes Bill to Create Organized Retail Crime Unit at Justice Department
WASHINGTON, July 30, 2010 – The National Retail Federation today welcomed the introduction of legislation that would establish a new unit at the Department of Justice focused on investigating and prosecuting organized retail crime.
“Creating a dedicated team of investigators and prosecutors at the highest level of our nation’s law enforcement structure is a good first step in putting organized retail crime perpetrators behind bars,” NRF Senior Asset Protection Advisor Joe LaRocca said. “Coupled with existing programs at the local, state and federal levels, this bill is one of the keys to protecting both retailers and consumers against the massive economic costs and very real public health and safety risks posed by these crimes.”
H.R. 5932, the Organized Retail Theft Investigation and Prosecution Act of 2010, was introduced Thursday by Representative Bobby Scott, D-Va., chairman of the House Judiciary Committee’s Subcommittee on Crime, Terrorism and Homeland Security. The measure was assigned to the Judiciary Committee, where Chairman John Conyers, D-Mich., Ranking Member Lamar Smith, R-Texas, and committee member Bob Goodlatte, R-Va., are all cosponsors.
The measure would create an Organized Retail Theft Investigation and Prosecution Unit in the Department of Justice staffed with investigators, prosecutors and other personnel as necessary. The unit would be charged with investigating and prosecuting instances of ORC over which the Department of Justice has jurisdiction, assisting state and local law enforcement agencies on ORC and advising victims of ORC.
Under the bill, ‘‘organized retail theft’’ would be defined as obtaining retail merchandise by illegal means for the purpose of reselling or otherwise placing such merchandise back into the stream of commerce, aiding or abetting the commission of such acts, or conspiring to commit such acts.
In addition, the Attorney General would be required to submit a report containing recommendations on how retailers, online businesses, and law enforcement agencies can help prevent and combat organized retail crime to the Judiciary Committee and post the report on the DOJ website. The bill would also authorize $5 million per year for fiscal years 2011 through 2015 to fund the new program.
The legislation is the fifth bill on ORC to be introduced in the current session of Congress, reflecting lawmakers’ belief that ORC and online e-fencing of stolen retail merchandise are serious issues deserving of a federal law enforcement solution due to their multi-jurisdictional nature and overall impact in interstate commerce.
The bill is the second from Scott, who introduced the E-Fencing Enforcement Act last year to require online auction operators to retain information about high-volume sellers and provide the information to retailers once a police report is filed. Also pending are measures sponsored by Senate Majority Whip Richard Durbin, D-Ill., Representative Brad Ellsworth, D-Ind., and Smith that would define ORC, make it a federal crime for the first time, and require tougher sentences for convicted offenders.
Retailers lose between $15 and $30 billion to ORC each year, according to the FBI and retail loss prevention experts. In addition, 89 percent of retailers reported that they were victims of organized retail crime in the past year, according to an annual NRF survey released earlier this year.
ORC rings typically target everyday consumer products that are in high demand and easy to steal such as infant formula, razor blades, batteries, analgesics, cosmetics and gift cards. More expensive products such as DVDs, CDs, video games, designer clothing and electronics are also highly prized. Once stolen, the goods are resold at pawn shops, flea markets, swap meets and on the Internet. The thefts force retailers to increase prices to cover the losses, and threaten public health when crime rings tamper with items such as infant formula or medication by extending expiration dates or repackaging and relabeling the items.
As the world's largest retail trade association and the voice of retail worldwide, NRF's global membership includes retailers of all sizes, formats and channels of distribution as well as chain restaurants and industry partners from the United States and more than 45 countries abroad. In the United States, NRF represents the breadth and diversity of an industry with more than 1.6 million American companies that employ nearly 25 million workers and generated 2009 sales of $2.3 trillion. www.nrf.com
“Creating a dedicated team of investigators and prosecutors at the highest level of our nation’s law enforcement structure is a good first step in putting organized retail crime perpetrators behind bars,” NRF Senior Asset Protection Advisor Joe LaRocca said. “Coupled with existing programs at the local, state and federal levels, this bill is one of the keys to protecting both retailers and consumers against the massive economic costs and very real public health and safety risks posed by these crimes.”
H.R. 5932, the Organized Retail Theft Investigation and Prosecution Act of 2010, was introduced Thursday by Representative Bobby Scott, D-Va., chairman of the House Judiciary Committee’s Subcommittee on Crime, Terrorism and Homeland Security. The measure was assigned to the Judiciary Committee, where Chairman John Conyers, D-Mich., Ranking Member Lamar Smith, R-Texas, and committee member Bob Goodlatte, R-Va., are all cosponsors.
The measure would create an Organized Retail Theft Investigation and Prosecution Unit in the Department of Justice staffed with investigators, prosecutors and other personnel as necessary. The unit would be charged with investigating and prosecuting instances of ORC over which the Department of Justice has jurisdiction, assisting state and local law enforcement agencies on ORC and advising victims of ORC.
Under the bill, ‘‘organized retail theft’’ would be defined as obtaining retail merchandise by illegal means for the purpose of reselling or otherwise placing such merchandise back into the stream of commerce, aiding or abetting the commission of such acts, or conspiring to commit such acts.
In addition, the Attorney General would be required to submit a report containing recommendations on how retailers, online businesses, and law enforcement agencies can help prevent and combat organized retail crime to the Judiciary Committee and post the report on the DOJ website. The bill would also authorize $5 million per year for fiscal years 2011 through 2015 to fund the new program.
The legislation is the fifth bill on ORC to be introduced in the current session of Congress, reflecting lawmakers’ belief that ORC and online e-fencing of stolen retail merchandise are serious issues deserving of a federal law enforcement solution due to their multi-jurisdictional nature and overall impact in interstate commerce.
The bill is the second from Scott, who introduced the E-Fencing Enforcement Act last year to require online auction operators to retain information about high-volume sellers and provide the information to retailers once a police report is filed. Also pending are measures sponsored by Senate Majority Whip Richard Durbin, D-Ill., Representative Brad Ellsworth, D-Ind., and Smith that would define ORC, make it a federal crime for the first time, and require tougher sentences for convicted offenders.
Retailers lose between $15 and $30 billion to ORC each year, according to the FBI and retail loss prevention experts. In addition, 89 percent of retailers reported that they were victims of organized retail crime in the past year, according to an annual NRF survey released earlier this year.
ORC rings typically target everyday consumer products that are in high demand and easy to steal such as infant formula, razor blades, batteries, analgesics, cosmetics and gift cards. More expensive products such as DVDs, CDs, video games, designer clothing and electronics are also highly prized. Once stolen, the goods are resold at pawn shops, flea markets, swap meets and on the Internet. The thefts force retailers to increase prices to cover the losses, and threaten public health when crime rings tamper with items such as infant formula or medication by extending expiration dates or repackaging and relabeling the items.
As the world's largest retail trade association and the voice of retail worldwide, NRF's global membership includes retailers of all sizes, formats and channels of distribution as well as chain restaurants and industry partners from the United States and more than 45 countries abroad. In the United States, NRF represents the breadth and diversity of an industry with more than 1.6 million American companies that employ nearly 25 million workers and generated 2009 sales of $2.3 trillion. www.nrf.com