Nov 2, 2009 7:55 pm US/Eastern
Retailers, Lawmakers Battle Organized Retail Crime
BOSTON (WBZ) ―
While downturns in the economy are blamed for dramatic rises in shoplifting, like the recent theft of nearly $3,000 in sunglasses at South Shore Plaza, nine out of 10 retailers say they were victims of organized retail crime this year, according to the National Retail Federation. "It's individuals that are well-funded, well-organized and they're out here to steal specifically merchandise that they've targeted and they're using that as a criminal enterprise," says R.J. Gaites, a lead investigator for Target.
He and other experts estimate organized retail crime, which sometimes defeats security systems, now costs the industry and the public more than $30 billion a year. "It's been even shown to fund some terrorism operations. These are very bad people and we've got to stiffen some penalties and stiffen the ability to put these people behind bars," says Retailers Association of Massachusetts President Jon Hurst.
Why should you care about the spike in organized retail crime? Because it costs you twice, as a shopper and a taxpayer, say retailers and lawmakers. A recent survey shows the average retailer spends about $215,000 annually to fight organized retail crime, loses the value of stolen merchandise and passes those costs along to consumers. Police spend taxpayer dollars preventing and prosecuting organized retail crime and revenue is lost when merchandise is stolen.
Congressman William Delahunt, (D) 10th District, says the community is put at risk as taxpaying businesses are threatened. "The last thing we need to see are stores closing because they can't afford to operate; and $30 billion a year puts at risk the retail community and the community as a whole."
So Delahunt and State Representative Joseph Driscoll, (D) Braintree, are proposing legislation that, combined, would legally define organized retail crime, increase penalties beyond larceny and shoplifting, and hold accountable internet auction sites on which stolen merchandise is sold. "It would be tremendous help to us," says Gaites.
Massachusetts retailers hope the state legislation, which is still in committee, gets fast and favorable action as the holiday shopping season approaches.
Investigators of organized retail crime warn that stolen health and beauty supplies, which are frequent targets of theft rings, can be contaminated and present public health risks.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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