Counterfeiting — ORGANIZED RETAIL THEFT
Mr. Chairman, Members of the Subcommittee, Congressman Goodlatte. My name is Chris Nelson, and I am Director of Asset Protection for Target Corporation, headquartered in Minneapolis, Minnesota. Thank you for conducting today’s hearing on counterfeiting and organized retail theft. My statement today is presented on behalf of the Coalition Against Organized Retail Theft. This group, which has been together for close to five years, consists of national manufacturing and retail organizations as well as individual companies from both of these sectors. A listing of all Coalition Members can be found at the end of my statement.
Mr. Chairman. Organized Retail Theft is a growing problem throughout the United States affecting many sectors of the retail community from supermarkets and chain drug stores to mass merchandisers and specialty stores. It is clearly the most pressing security problem facing our industry. Organized Retail Theft now accounts for up to $30 billion in losses at store level annually according to the Federal Bureau of Investigation’s (FBI) interstate task force.
More importantly and most disturbing is the fact that this type of criminal activity can put consumer’s health and safety at risk. For example, consumers are potentially at risk when professional shoplifting rings steal consumable products, such as over-the-counter medications and infant formula. Pilfered products may not be kept under ideal or required storage conditions which can threaten the product’s integrity. And often times these organized thieves will repackage and change the labels of stolen products to falsely extend the product’s expiration date or to disguise the fact that the merchandise has been stolen.
Organized retail theft rings are highly mobile, moving from community to community, and across state lines stealing large amounts of merchandise from retail stores. They typically target everyday household products that can be easily sold through fencing operations, flea markets, over the Internet, swap meets and shady storefront operations. In addition to infant formula and OTC medications, other items that are in high demand by these professional shoplifting rings include razor blades, camera film, batteries, DVDs, CDs, and smoking cessation products. High end items including designer clothes and electronics are also popular items for theft by these brazen gangs.
The Coalition wishes to express its gratitude to both the Justice Department (DOJ) and the FBI for their hard work and dedication on the organized retail crime front as well as the outstanding efforts of state and local law enforcement. In particular, retailers and manufacturers are very pleased about the recent collaborative effort between federal and state law enforcement officials who have broken up a retail theft ring operating in North Carolina and Virginia that was responsible for moving more than $2 million dollars worth of stolen infant formula and OTC products.
The Coalition views the apprehension of this theft ring as a very positive development, but more needs to be done because the problem is prevalent throughout the country and these theft rings are becoming more aggressive and violent in their behavior. Unfortunately, this goal may be elusive, and that’s because there is no federal statute currently on the books that specifically addresses organized retail theft crimes. The federal statute most frequently utilized in dealing with professional theft rings is the Interstate Transportation of Stolen Property Act, but this law is limited to situations involving the transporting of stolen goods. Thus, when professional thieves are apprehended for stealing large quantities of merchandise from a retail store, no federal statute is readily available. This means the case is likely to be handled under a state shoplifting law that usually treats such crimes as petty theft and a misdemeanor. As a result, rarely are organized retail theft cases prosecuted, and when they are, individuals who are convicted usually see limited jail time or are placed on probation if they have no prior arrests.
Therefore, retailers and manufacturers firmly believe that there is an overriding need to make Organized Retail Theft a federal felony as we believe it would serve as a strong deterrent against the commission of crimes of this nature in the future. In the 108th Congress, our Coalition endorsed such a bill (S. 1553) that was introduced by Senator Larry Craig (R-ID).
In addition to our support for an initiative that would make Organized Retail Theft a federal felony, the Coalition offers the following legislative recommendations for consideration by the Congress:
Mr. Chairman, this concludes my statement and thank you for allowing the Coalition Against Organized Retail Theft to participate in this important hearing.
More Events
» Facts & Figures