Congress must address rampant retail crime

OPINION:

As this country suffocates under a 9.1% inflation rate, American small businesses are feeling the pinch acutely. According to a recent Goldman Sachs 10,000 Small Business Voices survey, 91% said these broader economic trends are having a negative impact on their business. Whether they are reducing their inventory, letting go of valuable employees or tightening profit margins, times are tough for independent business owners.

While these broader economic trends are challenging enough, many small businesses are simultaneously having to endure a wave of retail theft, further eroding their bottom line.

The National Retail Federation reports that organized retail crime has risen by 60% since 2015, with nearly 70% of retailers reporting an increase in 2021. The economic impact of retail theft is profound; it has resulted in $125.7 billion in lost economic activity and 658,375 fewer jobs nationally. According to a survey of small business owners, 89% of small businesses across the country reported that they were affected by shoplifting in 2021, effectively forcing 25% of small businesses to increase the price of their products just to neutralize the loss.

These crimes are also having an alarming impact on the front-line retail workers and police forces. Over 86% of asset protection managers said that thieves have verbally threatened an associate with bodily harm, and 76% have claimed to have been physically assaulted. The threat of violence is even driving some businesses to shutter their doors. Just look at Starbucks, who recently decided to close 16 stores due to “safety issues.” The increased wave of organized retail crime is stretching the local police forces tasked with responding thin, but, with Democrats heightening their cries to defund the police, there’s no telling if they will receive the adequate resources needed to keep up with the volume of attacks.

That’s why, as Congress reconvenes in September, it’s time they prioritize H.R. 5502, the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act. If passed, H.R. 5502 would create an even more transparent marketplace by requiring online marketplaces to verify and disclose the contact information of certain high-volume, third-party sellers. This effectively discourages criminals by removing the layer of anonymity criminals online find so appealing and ultimately renders their preferred platform to peddle stolen goods unviable.

This bill has broad bipartisan support, as well as the backing of retail, tech and law enforcement groups alike. The INFORM Consumers Act is a must-pass, commonsense piece of legislation that could finally deliver some relief amid the current onslaught of economic turmoil and safety threats. It provides a unique opportunity to prevent crime while standing up for small businesses and consumers alike. Conservatives in Congress may not be able to immediately solve inflation brought on by current administration and congressional Democrat policies. But helping end costly organized retail crime that is crushing small retailers is within reach. Congress should not miss the opportunity to push this bill across the finish line this fall.