Collaborative Efforts Between Retailers and Online Marketplaces to Combat Organized Retail Crime – Orange County Register

California retailers and online marketplaces have joined forces in an innovative information-sharing agreement to combat organized retail crime, a rampant issue that leads to substantial financial losses each year. The agreement aims to target individuals or groups engaged in large-scale theft and fraudulent activities, wherein they steal retail goods with the intention of reselling, distributing, or returning the stolen merchandise for financial gain. In some instances, these stolen goods make their way onto platforms such as eBay for resale.

According to a survey conducted in 2020, retailers across the country suffer losses of approximately $700,000 per every $1 billion in sales due to organized retail crime. Under this new agreement, all parties involved agree to take proactive measures to enhance the detection and reporting of these crimes. Additionally, they pledge to collaborate more effectively with law enforcement agencies. California Attorney General Rob Bonta emphasizes the importance of unity, stating, “We are stronger when we work together as a united front.”

Bonta further asserts, “Organized retail crime costs businesses, retailers, and consumers, while also posing a risk to the public. This partnership demonstrates a genuine and robust commitment shared by the retail marketplace and law enforcement to crack down on these crimes. It showcases California’s determination and resilience in tackling these challenges within our state. Whether it is the diligent efforts of law enforcement, online marketplaces, or retailers, we will not tolerate organized retail crime in our state.”

In recent years, organized theft groups have targeted various establishments, such as Apple Stores and Home Depot locations, as well as 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. This latest agreement aligns with the goals and objectives of that legislation, which includes Senate Bill 301, enforcing threshold requirements for marketplaces to track and store information on high-volume third-party sellers, and Assembly Bill 1700, creating an online reporting tool managed by the Attorney General’s office to facilitate the reporting of organized retail theft by the public.

Zhi Zhou, the chief risk officer for eBay, affirms the company’s commitment to combatting stolen goods, stating, “eBay is dedicated to providing a secure online shopping experience for millions of people worldwide. We take a strong stance against 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.”

To assist the public in reporting complaints and providing tips, an online portal has been established at oag.ca.gov/retailtheft.

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