Dear Friend,

I wanted to take a minute to talk to you about a growing problem facing businesses and communities across the country: organized retail crime or ORC. ORC is the act of stealing large quantities of popular consumer products that are then resold, often with the proceeds funding additional crimes. The Federal Bureau of Investigation estimates that ORC currently accounts for $30 billion in retail losses annually. These criminals are increasingly turning to online marketplaces where they can unload their stolen goods with anonymity and expand their operations from the streets and pawn shops we all think about to millions of unsuspecting consumers’ living rooms in Indiana and across the country.

Of particular concern are products like baby formula, diabetic test strips, and over-the-counter drugs, which require proper storage and may pose health and safety risks to consumers who unknowingly purchase these stolen products online. For instance, in a case in Texas, officers seized $1 million worth of stolen baby formula that was being stored in rodent-infested garages with no temperature controls. And in a separate case in California, FBI agents seized 20 tractor-trailer loads of stolen baby formula, vitamins, and over-the-counter medications.

As a former law enforcement officer, I know all too well the growing problem ORC presents to local law enforcement and communities. But with the rising popularity of online marketplaces, bringing these criminals to justice is becoming more and more difficult. So this week, I teamed up with Republican Congressman Jim Jordan from Ohio and introduced bipartisan legislation to provide law enforcement and retailers with more tools to fight ORC and protect online consumers.

The Organized Retail Crime Act of 2008, H.R. 6491, requires increased transparency of high-volume sellers – those who sell at least $12,000 in merchandise annually – on online marketplaces to help identify criminals engaging in organized retail crime and protect online consumers. The bill will provide law enforcement officers and retailers with the tools they need to remove the cloak of anonymity and bring these criminals to justice; while at the same time, preserving the online marketplace for law-abiding citizens.

To learn more about the details of the bill and other ways I am working to protect Hoosier families and businesses, please visit the 8th District Online Office.

Sincerely,

Brad Ellsworth