Congress urged to intensify anti-theft measures, as retailers intensify lobbying efforts.

• More than 30 retailers' representatives joined a major industry lobbying group on Capitol Hill, intensifying their efforts to pass a law that supporters claim will reduce retail theft.
• The Combating Organized Retail Crime Act bill received support from the National Retail Federation as they intensified their campaign to rally for its passage.

On Thursday, more than 30 retailers' representatives gathered on Capitol Hill to lobby for a law that they claim will reduce retail theft.

The National Retail Federation intensified its efforts to garner support for the Combating Organized Retail Crime Act, which aims to enhance the prosecution of theft as a federal felony and establish a mechanism for governments to collaborate on crime prevention. The retail industry association christened its rally "Fight Retail Crime Day."

The bill's co-sponsors, along with NRF CEO Matthew Shay, held a press conference outside the Capitol prior to individual meetings with retail officials. During the conference, they emphasized the importance of the legislation to retailers' profits and the safety of their employees.

Sen. Chuck Grassley, R-Iowa, emphasized at a press conference that organized retail crime is not just about theft, but also poses a threat to employees, consumers, and individual retailers. He stated that the bill aims to address this issue comprehensively.

Retail crime is a different form of theft from shoplifting, as defined by the NRF as the large-scale theft of retail merchandise with the intent to resell it for financial gain. This usually involves multiple people stealing large amounts of goods from a range of stores, which is then sold through a fencing operation. The NRF and individual retailers have been vocal about the impact of retail crime on their profits, employees, and customers, with some retailers even citing the trend as a reason for closing stores.

Although some comments suggest that retailers' losses from theft are increasing, a survey by the NRF last month found that these losses are generally in line with historical trends. However, many respondents reported that violence associated with theft is becoming more common. Additionally, William Blair analysts noted in a research note that much of companies' lost inventory can also result from internal theft or management issues.

On Thursday, retailers continued their campaign for policy changes in Washington, even as the industry has pushed for federal and state laws aimed at reducing crime.

Earlier this year, the Combating Organized Retail Crime Act was reintroduced. This legislation aims to establish a new multi-agency group under the Department of Homeland Security that will gather information and intelligence from various states and local law enforcement sources. The goal is to enhance the detection, tracking, and prosecution of organized crime ring members through the implementation of new federal standards.

Scott McBride, the chief global asset protection officer of American Eagle Outfitters, highlighted the collaboration as a significant advantage of the proposed law while meeting with lawmakers to garner support.

One of the primary objectives of having a charter within a federal agency is to establish a clearinghouse that aggregates information for more efficient and in-depth investigations, he stated.

Retailers claim that organized retail crime can result in higher prices for customers and store closures, but many of the bill's sponsors are primarily concerned with the increasing violence linked to theft.

In 2022, two-thirds of retail respondents reported an increase in violence and aggression from ORC offenders compared to the previous year, while 81% of respondents in the 2021 survey reported more violence than in the year prior.

Some regions have struggled with hiring and retaining store employees due to the rise in violence, as retail employees are often advised not to intervene during thefts to avoid injury.

In a recent incident at a Walgreens, Rep. Dina Titus, D-Nev., shared her experience.

The individual created a backpack and began scraping eyelashes into it before exiting," she stated during the press conference. "I inquired of the sales lady, 'Did you observe what that man did?' She replied, 'Yes, he visits our store regularly and we are unable to intervene because management is concerned about potential injury.'

The industry has focused on the amount of stolen goods required to prosecute as a felony depending on the location. Trade groups have stated that many crime rings are aware of the law and steal only enough to avoid felony charges in each incident.

The bill proposes a new federal felony threshold that accumulates over any 12-month period instead of being set per incident.

According to Shay, this legislation enables prosecutors in states to opt for a federal remedy instead of or alongside a state remedy when specific thresholds are met. For instance, if the total value of stolen guards exceeds $5,000 in a single year, local prosecutors can pursue a federal charge.

Some experts have raised concerns that lowering the threshold may not decrease crime and that harsher penalties could harm disadvantaged communities.

The measure has broad support among Congress members, retail representatives, and the NRF, but time is running out to advance it through committee and beyond as the legislative year progresses.

McBride recognizes that the bill's passage would not be a complete solution, but it will add another layer to discourage organized retail crime and finance criminal activities.

The Combating Organized Retail Crime Act, which takes effect after another law known as the INFORM Act, aims to prevent the sale of stolen or counterfeit goods on online marketplaces by requiring sellers to be verified. Failure to comply will result in fines for retailers.

On Thursday, Shay stated that it is yet uncertain what the consequences of the new legislation will be.