This morning, NRF announced a new partnership with eBay to tackle the growing problem of organized retail crime. The partnership provides for greater information sharing to target ORC investigations which would further support the investigative efforts of federal, state, and local law enforcement working in partnership with LP professionals. (You read it right, I used the word NRF, eBay and partnership all in the same paragraph.)
As you know, we have taken a strong public position in the media and with Congress regarding individuals and companies responsible for fencing stolen and fraudulently obtained goods through traditional and online marketplaces. For years we have engaged online marketplaces, including eBay, to partner with our retail members and take an aggressive stance against these illegal operations. We have been watching carefully and have been impressed with eBays investment in a number of new resources and making tremendous strides assisting retailers and law enforcement agencies.
Through this partnership, NRF has committed to pulling together a core group of our members to meet with representatives from eBay on a regular basis to discuss trends in ORC. Were also looking at ways to leverage technology to combat the problem, and collaborating even more with the FBI to help identify crime rings who have been stealing large quantities of merchandise. Finally, NRF and eBay will work together on legislation aimed at enhancing resources to fight the problem and penalties for those who are convicted.
According to law enforcement and industry groups, organized retail crime rings steal as much as $30 billion in merchandise from retail stores every year. Unlike opportunistic shoplifters, ORC gangs are sophisticated criminal enterprises that steal large quantities of merchandise from retail stores with the intent to resell the goods for a profit. Organized retail crime has long been an issue plaguing both retailers and secondary marketplaces. In an NRF survey conducted in 2009, 92 percent of retailers said they were victimized by organized retail crime within the past year, and nearly three-fourths (73%) also reported the level of organized retail crime activity had increased. Through this partnership, NRF and eBay are putting criminals on notice that they will no longer be able steal from retailers and abuse the online marketplace for profit.
Partnerships are nothing new to NRF. We have been working with numerous retailers, law enforcement agencies and retail trade associations to track and prevent organized retail crime by:
Launching the Law Enforcement Retail Partnership Network (LERPnet), a database dedicated to collecting information from retailers to help identify and apprehend ORC gangs, now connecting thousands of law enforcement professionals through a prominent FBI portal.
Forming relationships with State Association, Law Enforcement and Industry partners to heighten awareness, which have resulted in new legislative efforts and development of numerous LP programs.
Forming a pilot program with the Immigration and Customs Enforcement team, which provides a broader picture of the threat posed by criminal organizations and determines ICEs role in the fight against organized retail crime. This partnership assesses the threat level of organized retail crime in several cities, including Los Angeles, Houston, Miami and New York.
Thanks to a growing movement of support from retail industry and law enforcement professionals across the country, we have made significant progress. However, the fight against ORC and eFencing is far from over.
As part of the partnership, NRF and eBay need your ongoing support to brainstorm best practices, leverage new technology to further assist law enforcement in identifying and tracking organized retail crime rings. I hope youll join us.
