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"I think they finally came to the conclusion that we were just never going to stop bothering them until they did it," Durbin said.Īmazon, eBay and Meta told CNBC they've already enacted a variety of safeguards to keep stolen goods off their sites. It also requires marketplaces to give consumers a way to contact certain sellers after making a purchase, and a system for reporting suspicious seller behavior or illicit goods.Īmazon, eBay and Meta all say they support the bill.
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In its current form, the bill requires verification data only from sellers doing north of $5,000 in revenue every two years. They don't care, I'm sorry to say, some of them don't care what happens once the sale is made." "They make money on the sales, and they don't want to make it harder for their sellers," Durbin said in an interview. It's gotten much, much worse."ĭurbin told CNBC that he's had to rewrite the bill several times primarily because of pushback from the marketplaces. "Well, here we are 13 years later and this problem hasn't gone away. You don't need legislation,'" Durbin said at a Senate Committee Hearing in November. "Back in 2008, I introduced my first bill to address the problem of illicit products sold online and the marketplaces told me, 'Don't worry, we're taking care of this. Dick Durbin co-authored the original bill. The House has passed a bill called the INFORM Consumers Act, which would require some sellers on sites such as Amazon, eBay and Meta's Facebook Marketplace to provide a verifiable bank account, tax ID and a working email and phone number. "If we as Home Depot have to understand who our suppliers are, then Amazon, eBay, whoever is selling should also have to understand who their sellers are." "We don't want people to be selling anonymously," said Scott Glenn, who leads asset protection at Home Depot.
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In December, 20 major retailers, including Home Depot, Best Buy, Walgreens and Kroger, sent a letter to Congress, asking lawmakers to crack down on online marketplaces by requiring stricter verification of sellers. That defense doesn't work when it comes to enabling the sale of stolen goods. Unlike products purchased off the shelf at Walmart or Home Depot, internet companies have claimed they're not responsible for the quality and safety of products from outside merchants who use their platform. Online retailers have long distinguished themselves from traditional brick-and-mortar chains by saying that, when it comes to third-party sellers, they're just a marketplace. The company also says it requests "proofs of sourcing" when it has concerns about how products were obtained, and works with authorities to weed out illegal activity. The companies disagree.Īmazon, for instance, says it spent more than $900 million and employed more than 12,000 people in 2021 to prevent fraud and abuse. While data is imprecise about the perpetrators, there's growing consensus that an entirely different group should be held accountable: e-commerce sites.Īmazon, eBay and Facebook are the places where these stolen goods are being sold, and critics say they're not doing enough to put an end to the racket. Arrests and indictments increased last year from 2020, along with the value of stolen goods that was seized. Government's Homeland Security Investigations unit, organized retail crime probes are on the rise.
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Some big chains blame organized theft for recent store closures or for their decisions to limit hours.įor the U.S. In 2020, three-quarters said they saw an increase in organized crime and more than half reported cargo theft. Retailers say a total of $68.9 billion of products were stolen in 2019.
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"It's no longer the age where it's done at flea markets or in the alley or in parking lots." "What fuels this as an enterprise is the ease of reselling stolen merchandise on online marketplaces," said Illinois Attorney General Kwame Raoul, who convened a national task force of state attorneys to make it easier to investigate across state lines.