States Across the Country Cracking Down on ORC Rings
Organized Retail Crime Spurs Action by Tax-Deprived States
A growing number of states are deputizing e-commerce marketplaces to crack down on criminal rings selling stolen and counterfeit merchandise online, an escalating fraud that eats holes in retailers’ pockets and robs the states of billions in tax revenue.

More than a dozen states debated bills this year that layer new data collection duties on marketplaces such as Amazon.com Inc., eBay Inc., and Etsy Inc., and give law enforcement agencies new tools to use the data to police thousands of e-commerce sellers. Colorado and Ohio enacted these marketplace oversight laws in March, and lawmakers in Alabama, Georgia, and Illinois approved nearly identical measures in the last three weeks.

While a criminal justice theme runs through the new state laws, the measures also address a tax gap that has opened as “organized retail crime” has exploded. The Retail Industry Leaders Association (RILA), which represents large retailers including Best Buy Co. Inc., HomeDepot Inc., and Target Corp., recently pegged the federal and state business tax losses at $15 billion annually. That number is billions higher when state and local sales tax losses are added because stolen items are often untaxed or undervalued when fenced online.

“Tax concerns aren’t motivating these bills,” said Richard Cram, director of a Multistate Tax Commission program addressing sales tax compliance. “But of course, a tax gap emerges where you have merchandise that is being purposely underpriced, so you don’t get the full tax value for those goods.”

Retailers and law enforcement officials describe the new laws as a line of defense against teams of professional burglars, shoplifters, and fencing agents. These criminal syndicates annually loot more than $70 billion worth of products from brick-and-mortar stores and traffic the stolen goods from e-commerce platforms, according to RILA.

Anonymity and Efficiency

E-commerce has facilitated retail theft in recent years, offering crooks anonymity and efficiency as they fence stolen goods. A report by RILA and the Buy Safe America Coalition pointed to a strong relationship between theft and e-commerce, finding that 61% of the recent surge in shoplifting is attributable to growth in online shopping.


INFORM Consumers Act

Retailers called on Congress and state legislatures to pass laws preventing thieves from shielding their identities when selling goods over marketplaces, Brewer said. At the federal level, both the Senate and the House last year introduced versions of the INFORM Consumers Act, requiring marketplaces to verify the identity of high-volume sellers. The House version of the bill, H.R. 5502, passed in February. news.bloombergtax.com

The Great ORC Debate Continues
Curran calls organized retail theft bill a 'large step backward'
"I am going to be a yes vote," Curran said from the Senate floor, "but I do want to express my disappointment on the large step backward from the initial product you put forward in combating what we see and hear about on a routine basis and really is the systemic organized criminal enterprise that we as a state of Illinois need to approach in a much more serious manner in combating," said Sen. Curran.

House Bill 1091 passed the Senate with 42 yes votes and 10 no votes, and passed the House with 96 yes votes and five no votes. It's been sent to the governor to be signed.

Though Republicans voted for the bill, many Republican lawmakers have withdrawn their names as cosponsors as they called the bill 'watered down' and found it to be appeasing civil liberties organizations and crime victim groups, the Lincoln Courier reported.

The main aim House Bill 1091 is to combat retail theft. It amends the state's criminal code and creates the Illinois Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act.

"Organized retail crimes have wreaked havoc on our workers, businesses and local economies," said Sen. Doris Turner (D-Springfield), who supports the bill, The State Journal-Register reported. Rob Karr, the leader of the Illinois Retail Merchants Association, supports the bill.

"This proposal seeks to combat organized retail crime comprehensively by addressing the problem from multiple angles," said Karr, The State Journal-Register reported. willcountygazette.com  westcentralreporter.com

6 Gun Shops, 11,000 'Crime Guns'
New York Times: A Rare Peek at the Pipeline

In Philly, a study found a handful of dealers selling a huge number of guns used illegally. A House panel is uncovering similar patterns elsewhere.

They look like delis or hardware stores — a corner shop decorated with stuffed Easter bunnies, a nondescript brick building in the shadow of Interstate 95, a storefront so picturesque it was featured in the new M. Night Shyamalan movie.

But they are in fact a dozen or so federally licensed firearms dealers operating in Philadelphia, where they have done brisk business in recent years meeting the demand from legal buyers in one of the nation’s most violent cities. They are also a major source of weapons used illegally, according to a new report that offers a rare glimpse into the link between legal gun sales and criminal activity.

From 2014 to 2020, six small retailers in south and northeast Philadelphia sold more than 11,000 weapons that were later recovered in criminal investigations or confiscated from owners who had obtained them illegally, according to an examination of Pennsylvania firearms tracing data by the gun control group Brady, the most comprehensive analysis of its kind in decades.

The report’s conclusions confirm what law enforcement officials have long known. A small percentage of gun stores — 1.2 percent of the state’s licensed dealers, according to Brady — accounted for 57 percent of firearms that ended up in the hands of criminals through illegal resale or direct purchases by “straw” buyers who turned them over to people barred from owning guns.

That finding was in line with a new batch of tracing data obtained by the House Oversight and Reform Committee, which also found that a small number of retailers in Georgia, Indiana, Florida and Michigan were responsible for a high proportion of so-called crime guns traced by law enforcement, according to a letter the committee sent to the Bureau of Alcohol, Tobacco, Firearms and Explosives on Thursday.

The House panel’s continuing investigation used data from the A.T.F. to show that “a small number of gun dealers are disproportionately responsible for flooding our streets with guns that are used in crimes,” Representative Carolyn B. Maloney, the New York Democrat who is the chairwoman of the committee, said in a statement. nytimes.com

RFID vs. Gun Violence
Reducing Gun Violence via RFID

A recent article published at Medium.com explains why RFID-based smart guns could significantly reduce gun deaths in the United States.

According to Trace.com research, the number of U.S. gun deaths in 2021, excluding suicides but including murders, accidents and justifiable homicides, reached nearly 21,000. What's more, the number of mass-shooting incidents in the nation was nearly 700, two-thirds of all U.S. cities experienced more homicides last year than in 2020, and twenty-two people died in school shootings, while eighty more were injured.

The situation has become so bad that the Build Back Better bill has earmarked $5 billion in funding for community violence intervention. Still, it seems doubtful this is going to change any time soon. But perhaps radio frequency identification can alleviate the situation.

Smart Guns Can Save Lives

With gun violence continuing to spike despite national and state legislative and public health campaign efforts, Fascitelli champions smart guns as a means of bringing down these staggering statistics. As he explains, such guns "can only be operated by the authorized user (i.e., gun owner) who authenticates usage, thus rendering it useless in the hands of children; underage teenagers; criminals who steal it; and non-gun owning individuals' intent on suicide with access to somebody else's gun."

Preventing Suicides, Homicides and Accidents

RFID Journal has covered smart gun technology in the past (see Smart Guns Should Be an Option, Are Smart Guns the Answer? and RFID Makes Guns Smarter and Safer). Fascitelli himself contributed an article on the subject in 2017, in fact (see Why RFID Is the Only Viable Path for Life-Saving Smart Gun Technology), in which he described "a technological solution that could save upwards of 10,000 lives annually by reducing the incidence of child firearm accidents, suicides involving third-party firearms and homicides committed with one of the 250,000 guns stolen annually."

Between the COVID-19 pandemic and the genocidal war in Ukraine, we've seen far too much death in our headlines these days. RFID-based smart guns can help to avoid more needless death. If you're interested in learning why such weapons could significantly reduce the U.S. gun violence epidemic, check out the above-linked articles, as well as Ralph's essay for Medium. rfidjournal.com

Another Violent Summer Coming?
City leaders ponder new strategies as warm weather brings spike in crime
City leaders say the warm weather played a factor in the spike in violence across Chicago this weekend but preparations in place, thought to address the rise in crime, weren’t enough.

Ald. Bryan Hopkins (2nd Ward) spoke out Monday, following a violent weekend that saw 42 people shot across 32 incidents, eight of which were fatal. The incidents occurred between 6 p.m. Friday through midnight Sunday.

“We knew the first warm weekend, whether it’s late April or early May, it’s always around the same time every year, and we were expecting this to happen,” Hopkins said. “We thought we had a plan, and it didn’t work.”

City leaders’ plan involved making arrests, police intervening when fights broke out and using surveillance video to track people carrying weapons. Hopkins says there are not enough resources, however. A contributing factor, Hopkins says, is the Chicago Police Department is down at least 2,000 patrolmen.

“We need to go back to the drawing board and see what adjustments can be made,” says Hopkins, “because to start off the summer this way is really getting off on the wrong foot.” wgntv.com

Mall Curfew Seeks to Curb Criminal Behavior
Weekend curfew to be implemented at The Parks Mall in Arlington after fight among teens last weekend
Beginning this Friday, a weekend curfew for people 18 and under will be enforced at The Parks Mall at Arlington, the mall announced Wednesday. After 2 p.m. on Fridays and Saturdays, people under 18 must be accompanied by someone who is 21 or older, the mall said.

The curfew, referred to as the Parental Guidance Required program, is in response to a fight that broke out inside the building Saturday and ended with seven juveniles taken into custody. During curfew hours, public safety officers will check IDs at mall entrances. Valid forms of ID include a driver’s license or state-issued ID card, a military ID, a school ID card or passport.

People who are over 18 will be offered an optional wristband to wear while shopping. People under 18 or who do not have proper identification cannot enter the mall without an adult. dallasnews.com

Nighttime lighting reduces crime but it's not a one-size-fits all solution, study shows

West Hollywood's security program aims to make residents feel safe again

US: 82.9M Cases - 1M Dead - 80.6M Recovered
Worldwide: 512.3M Cases - 6.2M Dead - 466.1M Recovered

Former Senior Loss Prevention Executive
Know of any fallen LP exec? Let's remember & recognize.

Private Industry Security Guard Deaths: 354  
Law Enforcement Officer Deaths: 761
*Red indicates change in total deaths

U.S. Reaches 'Transitional Phase' - But Still Remains In Pandemic
Fauci clarifies that the pandemic isn’t over, after saying the U.S. is out of the ‘pandemic phase’
Dr. Anthony S. Fauci, the government’s top infectious disease expert, said on Wednesday that the pandemic was not yet over, after telling the “PBS NewsHour” on Tuesday that the United States was “out of the pandemic phase.”

He offered clarification on NPR’s “1A” on Wednesday, saying: “I want to clarify one thing. I probably should have said the acute component of the pandemic phase. And I understand how that can lead to some misinterpretation.”

In comments to PBS and The Washington Post this week, Dr. Fauci had said that the country had entered a new phase of the pandemic, because daily counts of confirmed new cases, hospitalizations and deaths were far lower than during the Omicron surge over the winter. And he told The Washington Post on Wednesday, “We’re really in a transitional phase, from a deceleration of the numbers into hopefully a more controlled phase and endemicity.” nytimes.com

COVID's Retail Impact: A 30,000-Foot View
The Impact of Online Shopping on Retail Sales During COVID-19 Pandemic

While retail e-commerce grew, sales in some industries declined from 2019 to 2020 as pandemic-related lockdowns kept people at home, working and shopping online.

In the face of changes partly caused by the pandemic, retailers are finding new ways to capitalize on the convenience economy of online shopping and at-home delivery. Some brick-and-mortar stores have tried to enhance the shopping experience to give consumers a reason to leave their online comfort zone and return to in-store shopping.

For example, some retailers have held in-store parties decked out with DJs, refreshments and door prizes. Others now accept in-store returns of online purchases to lure customers to their stores.

Here’s how some U.S. retail sectors fared in this virtual world:

● Sales at gasoline stations fell from $513.5 billion in 2019 to $428.1 billion in 2020, as commuting became unnecessary for many and travel slowed down.

● Sales at bookstores dropped from $8.9 billion in 2019 to $6.2 billion in 2020.

● Sales at clothing and clothing accessories stores slipped from $269.5 billion in 2019 to $201.4 billion in 2020, as the need for new clothes and accessories for the workplace or social outings waned. bctv.org

Shanghai's economy slows as COVID-19 deals blow to industry, retail
The economy of Shanghai, China's most populous city, slowed in the first quarter from the end of 2021, hurt by rare declines in industrial output and retail sales that were hammered by the country's most serious COVID-19 outbreak.

Denmark becomes the first country to halt its Covid vaccination program

Family Dollar Lawsuit Following Massive Rat Infestation
Arkansas sues Family Dollar over rodents found in facility; AG asks judge to bar the company from doing business in the state

The lawsuit seeks to bar Family Dollar from doing business in Arkansas following an inspection that discovered over 1,000 rodents and led to more than 400 closures

Arkansas is suing Family Dollar over the discovery of more than 1,000 rodents in a distribution facility in the state that prompted the discount retail chain to recall items purchased from hundreds of stores in the South.

The lawsuit, filed Thursday by Attorney General Leslie Rutledge in state court, accuses the chain and parent company Dollar Tree of deceiving consumers, negligence and engaging in a conspiracy that allowed the infestation at the West Memphis facility to occur.

The U.S. Food and Drug Administration announced in February that it had inspected the distribution facility following a consumer complaint. Inside the building, inspectors said they found live rodents, dead rodents in “various states of decay,” rodent feces, dead birds and bird droppings.

After fumigating the facility, more than 1,100 dead rodents were recovered, officials said. Family Dollar issued a temporary recall and closed 404 stores in six states — Alabama, Arkansas, Louisiana, Mississippi, Missouri and Tennessee — so numerous products that had been at the facility could be removed from shelves. Family Dollar in February said it was not aware of any illnesses related to the recall.

The products included human foods, animal foods, cosmetics, medical devices and over-the-counter medications. The infestation has also prompted private lawsuits in several other states that have been filed on behalf of customers.

According to the lawsuit, state and federal inspections show Family Dollar had known of the rodent infestation at its facility since at least January 2020.

Arkansas' lawsuit seeks up to $10,000 for each product that was distributed over the past two years by the facility to Arkansas consumers that was affected by the infestation, under the state's deceptive trade practices act. Rutledge is also seeking punitive damages and restitution for Arkansas consumers affected by the contamination. In her lawsuit, Rutledge also asks a state judge to suspend or revoke Family Dollar's authorization to do business in the state. sacbee.com

Price-Fixing or Inflation?
Lawmakers question beef executives over soaring food prices

Two bills aim to reduce food prices and help ranchers, but critics say big beef companies are being scapegoated

Lawmakers on Capitol Hill aggressively questioned the chief executives of the country’s four major beef producers, accusing them of engaging in anti-competitive practices that have financially harmed cattle ranchers and driven up the price of meat.

The four multinational corporations — National Beef, JBS, Cargill and Tyson — control 85 percent of the beef industry. Allegations that these meatpackers have abused their position in a highly concentrated market to fix prices has led to $400 million in fines and settlements in recent years. Critics of the companies’ conduct also say industry consolidation has squeezed both ends of the supply chain, with ranchers being paid unsustainable prices for their cattle and consumers overpaying at the grocery store.

Defenders of the meatpacking firms say they are being scapegoated for inflation. Tyson chief executive Donnie King defended his company’s actions Wednesday, telling the House Agriculture Committee that it doesn’t set prices for either cattle or beef.

But lawmakers took a sharp tone with the executives in the face of rising food prices and concerns that the companies took advantage of the coronavirus. The four companies’ collective net profits rose more than 300 percent during the pandemic. washingtonpost.com

Retail Wages in the Spotlight
5 major companies together saw their profits increase 41% during the pandemic, 8 times faster than their workers' wages

Wages increased by a much smaller 5% at these five companies together, after adjusting for inflation.

The economic picture wasn't dreary for everyone during the pandemic: Big US companies like Amazon and Target saw huge profits as the world shuttered. A new report from Brookings looked back at how those profits compared to worker pay.

Brookings found that even as profits climbed, worker pay mostly didn't rise at the same rate. It's a familiar pandemic tale, and one that may be fueling the ever-present wave of low-wage workers quitting at near-record rates.

In fact, at five companies who "won" the pandemic profit-wise and for which Brookings had wage data, profits rose by 41% together after adjusting by inflation — but real wages rose by just 5% for workers. Those companies are Amazon, Walmart, CVS, Target, and Kroger. This means "profits rose at eight times the pace of worker wages," per the report. businessinsider.com

Introducing the Essentials of Risk Assessment Certificate
When it comes to establishing a security program, the key to a strong foundation is conducting a security risk assessment. The assessment identifies vulnerabilities and aids security managers in protecting their organization.

The new Essentials of Security Risk Assessments Certificate from ASIS International is designed to give you knowledge and skills to conduct a risk assessment, from collecting data to conducting a site survey and evaluating countermeasures. This entirely virtual and self-paced CPE-eligible course equips you to cite sources of risk and relate the concepts taught to your organization.

Did you know that ASIS members receive $50 off certificate registration? Join today and save!  store.asisonline.org
 
F.D.A. Moves to Ban Sales of Menthol Cigarettes
Public health experts say the proposal could save hundreds of thousands of lives

Shoppers won’t give retailers a second chance after this…