NACDS, allies call on Congress to curb organized retail crime wave

ALEXANDRIA, Va. Vowing to raise awareness among lawmakers of the damage wrought by organized criminals against retail businesses, a coalition of pharmacy and retail advocates including the National Association of Chain Drug Stores has embarked on a new campaign to influence policy on Capitol Hill.

NACDS and some of its members joined the Coalition Against Organized Retail Crime for a “Hill Day” and policy briefing with members of Congress and their staffs to highlight the growing problem of organized retail crime and its impact on NACDS members. The focus is on legislative efforts to address the large-quantity theft and re-selling of products such as infant formula, over-the-counter medicines, health and beauty aids, razor blades, batteries and electronics through flea markets, pawnshops, small retail establishments, and online auction sites.

Federal lawmakers have responded with several legislative proposals strongly supported by NACDS. Among them:

• Reps. Brad Ellsworth, D-Ind., and Jim Jordan, R-Ohio, introduced the Organized Retail Crime Act of 2009 (H.R. 1173), which would amend the federal criminal code to combat, deter and punish ORC, including facilitation of such illegal activities, and target criminals’ use of online marketplaces to sell the stolen goods and products. ? ?• Rep. Bobby Scott, D-Va., introduced the E-Fencing Enforcement Act of 2009 (H.R. 1166), which would require that on-line marketplaces halt the sale of goods on websites if the goods are determined to be stolen, helping to curb the selling of stolen goods on-line, and help law enforcement collect information about violators. ??• Democratic Senators Dick Durbin of Illinois and Amy Klobuchar of Minnesota are sponsoring the Combating Organized Retail Crime Act of 2009 (S. 470), which would clarify existing law to give law enforcement the tools to fight ORC, require on-line and off-line market places to investigate suspicious sales, and place basic disclosure requirements on on-line marketplaces.

NACDS president and CEO Steven Anderson praised the moves. “Organized retail crime is responsible for over $30 billion in losses annually, resulting in increased costs for merchants, higher prices for consumers, and lost tax revenue for state and local governments,” he said. “We thank Rep. Ellsworth, Rep. Jordan, and Rep. Scott for their leadership in introducing legislation to help businesses and law enforcement curb retail crime – both in retail stores and illegal online marketplaces.

“We also commend the efforts of Senator Dick Durbin and Senator Amy Klobuchar in helping to stem the facilitation of illegal organized retail crime activities,” Anderson continued. “We look forward to continuing to work with Congress on this critical problem.”