AG Announces Statewide Focus on Retail Crime Through Information-Sharing Agreement

Retailers and online marketplaces in California have joined forces to combat organized retail crime, a problem that results in billions of dollars in losses annually, according to officials who made the announcement on Tuesday.

Organized retail crime refers to large-scale theft and fraud committed by individuals or groups who steal retail goods with the intention of reselling, distributing, or returning them for financial gain. Sometimes, these stolen goods are sold on platforms like eBay and other online marketplaces.

According to a 2020 survey, retailers across the country lose about $700,000 to organized retail crime for every $1 billion in sales. The agreement aims to enhance the detection and reporting of these crimes and improve collaboration with law enforcement, as stated by California Attorney General Rob Bonta.

“Working together as a united front makes us stronger,” Bonta said in a statement. “Organized retail crime has a detrimental impact on businesses, retailers, consumers, and public safety. This new partnership showcases a strong and sincere commitment from the retail marketplace and law enforcement to crack down on these crimes. Today’s announcement reflects the resilience and determination of California in addressing these challenges within our state. Whether it’s law enforcement, online marketplaces, or retailers, we will not tolerate organized retail crime in California.”

In recent years, organized theft groups have targeted locations such as Apple Stores, Home Depot, cargo trucks leaving Microsoft shipping facilities, and cargo containers on idle trains in downtown Los Angeles.

In 2022, California enacted a package of legislation to address retail crime. Bonta stated that the new agreement aligns with the intent and purpose of this legislation, which includes:

– Senate Bill 301, which sets requirements for marketplaces to collect and store information about third-party high-volume sellers in compliance with California privacy laws. It also requires marketplaces to monitor the future sales activities of high-volume third-party sellers not adhering to these reporting requirements.

– Assembly Bill 1700, which establishes an online reporting tool managed by the Attorney General’s office to enable the public to report organized retail theft.

“eBay is dedicated to providing a secure online shopping experience for millions of people worldwide and takes a strong stance against stolen goods,” said Zhi Zhou, the chief risk officer for eBay. “We have zero tolerance for criminal activity on our platform and are proud to support Attorney General Bonta and other online marketplaces in their efforts to tackle organized retail theft and prosecute those who attempt to sell stolen goods on our platform.”

The online portal for the public to submit complaints and tips can be accessed at oag.ca.gov/retailtheft.

Reference

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