Congresswoman Abigail Spanberger (D-VA) has called on three e-commerce giants to disclose information about their mechanisms to deter stolen goods from being sold on their marketplaces.
Amazon to Shutter Two California Facilities, Affecting More Than 300 Employees
Spanberger sent letters to Andy Jassy, CEO of Amazon , Mark Zuckerberg, CEO of Facebook and Jamie Iannone, CEO of eBay on Monday, calling on the three leaders to share data and ideas with members of Congress.
In her letters, Spanberger notes that platforms like the ones these CEOs head up are a prime target for organized retail crimesters looking to sell off items they stole from stores digitally.
“E-commerce platforms play a vital role in connecting legitimate small businesses to larger consumer bases. However, criminals often exploit e-commerce platforms to offload illicit goods with relative anonymity,” she wrote. “These criminals typically create front companies on online platforms to advertise stolen goods for resale. They also leverage sophisticated methods, or at times professional money launderers, to further disguise their identities.”
The Integrity, Notification and Fairness in Online Retail Marketplaces for Consumers Act (INFORM Consumers Act), which went into effect in June 2023, directly targets the resale of counterfeit, stolen or unsafe items. It requires that online marketplaces like Shopify, Amazon and more “collect, verify and disclose” information about high-volume sellers of new or unused consumer-facing goods.
According to the Federal Trade Commission , “The goal of the…INFORM Consumers Act is to add more transparency to online transactions and to deter criminals from acquiring stolen, counterfeit or unsafe items and selling them through those marketplaces.”
Homeland Security data shows that ORC impacts retailers, governments and individual families and consumers; the agency estimates state and federal governments lose about $15 billion in tax revenue because of ORC, while each family in America pays about $500 in extra costs each year because of ORC’s impact.
While the majority of the burden falls to the marketplaces for vetting, the law also offers a way for consumers to flag suspicious seller activity based on their experiences.
Amazon Sues NLRB After Board Determines Delivery Partners Are Joint Employers
Spanberger said she appreciates Amazon, eBay and Facebook’s compliance with the INFORM Consumers Act, but called it “just one step in curtailing these criminals.” She went on to say that “the notable proliferation of ORC and supply chain theft means every sector must step up its enforcement.”
She has asked the three companies to submit additional information to Congress, including “how many employees are dedicated to specifically monitoring third-party sellers to ensure they are compliant with the INFORM law and are not selling stolen goods,” an estimate of the profit third-party sellers hawking stolen goods turn off the platform each year, information about following up on complaints of suspicious activity and more.
Spanberger also requested that the CEOs propose actions they believe Congress should be taking to help them prevent marketplaces from being used and abused for the purpose of selling stolen goods.
A spokesperson for eBay said it already has a robust system for tracking stolen goods on its platform.
“EBay has zero tolerance for criminal activity on our platform and has been a leader in the battle to curtail organized retail theft. Through our Partnering with Retailers Offensively Against Crime and Theft (PROACT) program, we regularly collaborate with retailers and law enforcement to support criminal prosecutions against those who try to use our platform to sell stolen goods. We welcome the opportunity to work with Rep. Spanberger and other members of Congress to share how our success countering organized retail crime can be replicated on other marketplaces,” the spokesperson told Sourcing Journal via email.
Amazon uses a variety of detection and prevention mechanisms to prevent stolen items from being sold on its platform; its technology has the ability to spot ORC schemes. The company has referred thousands of ORC suspects or actors to law enforcement, which has taken down some of the rings responsible for the resale of stolen goods.
Neither Amazon nor Facebook returned multiple requests for comment from Sourcing Journal.
Byte-Sized AI: Amazon Teams With Covariant on Robotics; Resonance Makes Made-to-Order More Accessible
Local News
Comments / 0