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How a US Funding Bill Targets Online Sites to Help Stop Retail Theft (apnews.com) 37

This week America passed a $1.7 trillion federal spending bill — and it includes a big win for retailrs reporters the Associated Press. It forces online marketplaces like Amazon and Facebook "to verify high-volume sellers on their platforms amid heightened concerns about retail crime...." The bill, called the INFORM ACT, also seeks to combat sales of counterfeit goods and dangerous products by compelling online marketplaces to verify different types of information — including bank account, tax ID and contact details — for sellers who make at least 200 unique sales and earn a minimum of $5,000 in a given year.

It's difficult to parse out how much money retailers are losing due to organized retail crime — or if the problem has substantially increased. But the issue has received more notice in the past few years as high-profile smash-and-grab retail thefts and mass shoplifting events grabbed national attention. Some retailers have also said in recent weeks they're seeing more items being taken from stores. Target executives said in November the number of thefts has gone up more than 50%, resulting in more than $400 million in losses. Its expected to be more than $600 million for the full fiscal year.... Walgreens, Best Buy and Home Depot have also pointed out similar problems.

The National Retail Federation, the nation's largest retail trade group, said its latest security survey of roughly 60 retailers found that inventory loss — called shrink — clocked in at an average rate of 1.4% last year, representing $94.5 billion in losses [included damaged products and theft by employees] ... It also noted retailers, on average, saw a 26.5% uptick in organized theft incidents last year.

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How a US Funding Bill Targets Online Sites to Help Stop Retail Theft

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  • The federal government cracking down is making it so the only way one can still profitably steal from retail chains is just to get a mob of "urban youths"* to walk into stores and take the stuff.

    • What's with the "urban youths" in scare quotes and the unattached asterisk? Were you leaving to say something more specific? Please enlighten us.

      • Just to prompt the sort of panty-wetting comment like you made, frankly.

        The asterisk was because I'd footnoted that 'Euphemism employed to protect the quavering' but I figured that was obvious and just forgot to remove the asterisk.

        • So not following your euphemism avoiding drivelling is "panty wetting"?

          Be plain. Say what you mean. Are you afraid of saying what you mean? If so, why? You are effectively anonymous here, so the worst that will happen is people will associate your username with foolishness, but that's likely already the case anyway.

  • Call me cynical, but this looks like tax-fraud-prevention rule to me.

  • Two issues (Score:4, Insightful)

    by Retired Chemist ( 5039029 ) on Monday December 26, 2022 @10:03AM (#63158418)
    There seem to be two issues mixed or confused here. One is counterfeit goods, a problem far older than internet sales and the other is the theft and resale of goods, also an ancient problem. Counterfeit goods was a major issue at WalMart for a long time. Their buyers simply did not bother to confirm if the goods they were buying mostly overseas were real or not. This issue has simply moved on-line. Seizure of the goods is one solution, but you have to find them first and the volume of materials imported into the US is vast. The second is an eBay sort of problem, where the old-time fence has moved on-line. The problem there is proving that goods are stolen. I do not think that this legislation is likely to have any real effect. The profits are too good and the issue is too large. You would have to hit the sites with gigantic fines to really give them an incentive to make the effort (which would also cost them money) to do anything effectlve.
    • by AmiMoJo ( 196126 )

      My friend registered for Gumtree, sold a guitar, someone bought it within 30 minutes and collected it in person. Paid cash.

      A few minutes later he gets an email from Gumtree saying his account is banned. No explanation, no way to appeal it.

      There system is clearly very broken.

  • Verification only applies to selling more than 200 items thru a marketplace in a 12-month period. Without verification the obvious outcome is a marketplace which sees more unverified sellers hawking stolen goods so each unverified seller stays below 200 items.

    This likely results in buyers and marketplaces being even less informed due to lack of seller history and seller related feedback.

    Suspect real motivation for this is that imposing requirements on legitimate sellers is a process hurdle that favors larg

    • Where do you get 200 different items? The article says 200 unique sales and $5000 revenue.
      • That's less than one $20 sale per weekday. This has to be the stupidest laws yet.

      • Where do you get 200 different items? The article says 200 unique sales and $5000 revenue.

        The article is wrong. The act only applies to new or unused consumer products. You can conduct any number of transactions involving used items or non-consumer products and in doing so you would not be considered a high-volume third party seller.

  • This bill is incredibly dangerous, and I encourage everyone to read the actual text. It's very short. https://www.congress.gov/bill/... [congress.gov] This does apply to Amazon, eBay, etc, but to every single website or app that in any way facilitates a sale. The only way a site can comply with the rules is if it tracks every sale and gathers the personal information of every seller in order to determine if they have reached the reporting limit. This effectively bans Craigslist and every forum and blog from allowing indi
  • Disclaimer, I'm not American and I am not part of the American political or economic systems.

    So, stores open up and start selling goods. The stores in poor areas then get looted into oblivion so they then close. Then the inhabitants of those areas complain about not having stores and how this is due to systemic racism. So, what I'd like to know is, in my limited experience of this (watching youtube videos, reading Slashdot/reddit and online forums etc) it appears the theft is mainly done by black people. Th

/earth: file system full.

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