By JIM MERRITT
Guest Column
Local news outlets across Indiana have been flooded with ominous images of shattered windows, closure signs on local businesses, and nameless figures smashing in display cases. But what you don’t get to see is the overwhelming impact these crime sprees are having on Indiana’s communities.
In 2019 alone, there were 5,331 robberies reported in Indiana, ranking as the 16th-highest robbery rate in the nation. The organized retail crime (ORC) wave is draining Indiana’s businesses. According to a study done by the Retail Industry Leaders Association, Indiana has lost $1.8 billion to organized retail crime, contributing to nearly $70 billion of retail loss nationwide.
While organized retail crime has become a billion-dollar issue in Indiana, the state budget spent on policing doesn’t reflect the severity of the problem. The state of Indiana spends less per capita on police and corrections than any other state in the nation, spending only 2.48 percent of its annual budget. As the lowest per capita spender in the nation, there is a clear disproportion between the monetary havoc ORC is wreaking in Indiana and the amount of resources being spent to address it.
ORC-related investigations are already taxing enough for local police forces at the scene of the crime and now, with the number of stolen goods showing up online, the impact of organized retail crime is trickling up to the federal level, involving everyone from the FBI to the FTC in some cases.
Thankfully, Congress has a unique upcoming opportunity to address this issue in Indiana and across the country by passing H.R. 5502, the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act; a provision currently being considered as a provision in the Bipartisan Innovation Act. As the omnibus package undergoes committee conference scrutiny, it’s essential that the INFORM Consumers Act doesn’t slip through the cracks.
The INFORM Consumers Act would require online marketplaces to verify the contact information of certain high-volume, third-party sellers and provides consumers with the ability to report suspicious activity through a hotline. These are straightforward steps that can be taken to disincentivize criminals from stealing goods in the first place and curb the appeal of organized retail crime. Additionally, this bill would ensure that small businesses selling online aren’t subject to an arduous state by state patchwork of bills trying to address this issue with varying selling standards and compliance regulations. It’s a commonsense policy that stands to benefit law enforcement, consumers, retail, and online businesses alike.
Not only is H.R. 5502 a universally beneficial bill, it’s also a bipartisan blue moon that even has organizations with typically opposing policy priorities – like National Retail Federation and TechNet – aligned in support.
Passing H.R. 5502 is the best first step in combating the mess organized retail crime is making in Indiana and across the country. Congress should ensure the INFORM Consumers Act is included in the Bipartisan Innovation Act before it reaches the president’s desk.
Jim Merritt is a former State Senator and former Indianapolis Mayoral Candidate.