2008 LEGISLATIVE AGENDA

Organized Retail Crime

Retail Council position

Support legislation that would clarify and strengthen New York’s current laws combating organized retail crime (ORC).  The absence of clearly defined and tough penalties against ORC has created an opportunity for highly-skilled thieves to steal tens of millions annually from New York merchants.

Support legislation that would increase penalties for individuals who manufacture and/or sell counterfeit merchandise to consumers throughout New York State.  Such counterfeit goods not only effect the bottom line of honest merchants, certain products also pose a serious health threat to the consumers who use them.

Legislative action

The Senate passed important organized retail crime (ORC) bills in the 2007 Legislative Session, all supported by the Retail Council.  All of these bills remained in the Assembly Codes Committee.  They include:        

ANTI-SECURITY MECHANISM: Would establish a penalty for possession of a device manufactured to offset or bypass retail security systems, with the intent to steal merchandise.  S.5153 (Fuschillo) / A.9094 (Pheffer)

ITINERANT MERCHANTS:  Would clarify existing definitions of items prohibited from sale by itinerant merchants.  S.4442 (Fuschillo) / A.6462-A (Schimminger)

THIRD-TIME FELONY:  Would enhance penalties for petit larceny when the offense is repeated three times within a certain period of time.  S.1868 (Rath) / A.7037 (DelMonte)

COUNTERFEIT MERCHANDISE: Would enhance penalties for trademark counterfeiting.  Additional counterfeit merchandise bills passed the Senate in 2007 and remain in the Assembly Codes Committee.  S.131(Padavan) / A.1847 (Weprin).

At a glance

  • Organized retail crime comprises a wide spectrum of high-volume and highly organized theft rings that cost New York retailers millions of dollars annually and, more importantly, compromise the health and safety of unsuspecting New York State consumers.
  • ORC goes well beyond mere shoplifting sprees – the crimes run the gamut from return fraud, credit card scams, and the sale of counterfeit merchandise to well-organized networks of trained thieves, boosters, and fences ready to steal and move product.
  • Organized retail crime takes an enormous bite out of a merchant’s bottom line, with the cost topping some $30 billion nationally each year.  Honest shoppers ultimately pay the price in higher costs at the cash register.
  • Retailers are being attacked by ORC rings and well-trained, highly-skilled, and professional shoplifters who are supported by their criminal fences.
  • Criminal fences either sell the goods to a higher-level fence or sell the goods themselves in a business-like setting, including on-line portals that ensnare unsuspecting, honest consumers.
  • Many ORC rings focus on theft of infant formula, over-the-counter medications, shaving products, film and data-recording media, batteries, and other fairly expensive non-foods.  These products may be sold in stores that the fences own - or in itinerant vendor locations where the quality, safety, and effectiveness of the products can be detrimentally compromised.  Again, the consumer pays the ultimate price - either through the purchase of stolen and unusable (and dangerous) merchandise, and/or through the higher cost at the cash register of the merchant from whom so many goods have been stolen.
  • Because retail plays such an important role in New York’s economy, New York must respond by passing laws that protect merchants and consumers from organized retail crime.