Although multiple states have taken steps toward addressing the pervasive issue that is organized retail crime, the plague continues to spread. These are sophisticated shoplifting rings that are able to turn a huge profit by selling items stolen in mass online to unsuspecting customers.
Amidst a recession, the additional nationwide strain on small businesses stemming from this wave of organized retail crime is too big not to notice.
A reported 89 percent of small businesses across the country reported that they experienced shoplifting in 2021. To compensate for these losses, 25 percent of small businesses were forced to raise the prices of their products.
In total, $68.9 billion worth of products were stolen in 2021, and these numbers will continue to grow with inflammatory prices. These crime rings are making a living at the expense of our country’s honest entrepreneurs.
In Alabama, these organized efforts have cost both large and small businesses thousands of dollars, siphoning valuable resources away from hiring new employees and growing their storefronts.
What’s even more concerning is that retail theft has escalated to physical violence. Just a few weeks ago, a Family Dollar store manager was left in critical condition after being stabbed by a shoplifter.
As a result of crimes like this, Alabama police forces have begun warning retail workers not to confront suspected shoplifters.
As of this date, Congress has failed to take any action. However, Alabama’s State Legislature has already taken steps to address this issue through the passage of HB 318 this past January. The legislation, spearheaded by Rep. Gil Isbell, enacted a more specific verification process for high-volume, third-party online sellers that sell online out of Alabama.
Meanwhile, other states across the country are passing their own pieces of legislation, each with slightly different compliance language.
It’s time for our lawmakers in Washington to create a uniform standard. Congress has the opportunity to do so by passing the INFORM Consumers Act.
INFORM would tackle the chaos created by nationwide organized retail crime by implementing a direct, coherent, and straightforward approach that includes requiring online marketplaces to disclose the name, tax I.D., bank account information and contact information of certain high-volume, third-party sellers.
These simple requirements would disincentivize criminals from stealing in the first place while also ensuring online sellers are protected from burdensome regulations.
The INFORM Consumers Act has already gained immense support from retailers, consumers, law enforcement, and tech because the bipartisan effort would provide genuine relief for small businesses that need it most.
Congress must seize the opportunity to stand up for small businesses and consumers alike by passing INFORM.
Ellie Taylor is CEO of the Alabama Grocers Association
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