Following a string of high-profile retail robberies late last year, state lawmakers have taken a renewed interest in enacting policies that help curb organized efforts among individuals to sell stolen merchandise on online marketplaces, better known as organized retail crime (ORC). According to the Coalition of Law Enforcement and Retail, the cost of organized retail theft on retailers has increased from $30 billion in 2010 to $45 billion in 2021. And another study conducted by the Retail Industry Leaders Association (RILA), found as much as $68.9 billion worth of merchandise was stolen from retailers in 2019 alone.
Federal lawmakers are still trying to pass meaningful reform by the end of this Congress. The bipartisan INFORM Consumers Act (HR 5502) — which focuses on transparency of high volume sellers who may be fencing stolen or counterfeit goods — remains in play. While 12 states have replicated the INFORM measure as one approach to deter ORC activity, there are other proposals under consideration. (Click here for the latest information.)
For example, nine states — Arizona, California, Connecticut, Florida, Illinois, Michigan, New Mexico, Utah, and Washington — have established ORC task forces to specifically prosecute suspects involved in organized retail crimes. In Wisconsin, despite a veto by the Governor, lawmakers advanced legislation (WI AB 829) that would have imposed a mandatory minimum sentence of incarceration for 180 days for a third conviction for the offense of retail theft that occurs within 10 years of the previous convictions. Lawmakers in Arizona (AZ SB 1472) and California (CA AB 1603), have introduced similar measures.
Some states considered legislation this year that codified ORC as a crime, or if already a crime, strengthened its scope. In Illinois, a bill (IL HB 4275) was introduced that would create the offense of ORC while the Washington Senate passed legislation (WA SB 5781), which made ORC a punishable offense if a person stole a total of at least $750 with two other accomplices.
Even when law enforcement is able to identify organized retail criminals, it can be difficult to prosecute them in a meaningful way because career criminals make sure that their crimes fall under the felony threshold. Florida Governor Ron DeSantis (R) signed a bill (FL SB 1534) that would allow a series of thefts committed within 30 days where more than ten items have been stolen to be aggregated into a single offense.
Efforts to enact state-level INFORM legislation were successful in twelve states — Alabama, California, Colorado, Georgia, Illinois, Iowa, Louisiana, Michigan, North Carolina, Ohio, Oklahoma, and Pennsylvania. All enacted legislation to require marketplaces to collect verifiable contact information for high-volume third-party sellers. In 2023, expect lawmakers in Florida, New Jersey, New York, Virginia, and Washington to debate this issue.
ORC in the News
California - Bay Area Retail Theft Bust Nets $8 Million in Stolen Merchandise from CVS, Walgreens, and Target
Florida - 3 Men Arrested, Accused of Elaborate Statewide Retail Theft Ring in 14 Counties
Illinois - Jury Finds Illinois Man Guilty of Operating a $20 Million Retail Crime Scheme
New York City - NYPD arrests 41 People in a $3.5 Million Dollar Retail Crime Bust
Oklahoma - 29 People Charged in Large Multi-State Retail Theft Ring worth over $10 Million