By Sarah Clark, Director of Policy 

Organized Retail Crime is an ongoing concern for businesses, consumers, and law enforcement agencies across the state, particularly as criminal networks exploit online marketplaces to traffic stolen goods.  

The Washington State Attorney General’s Office established an Organized Retail Crime Task Force in 2022 to address this issue through collaboration among local, state, and federal agencies, retail stakeholders, and online marketplaces.  

Organized retail crime impacts leads to significant economic losses, compromised shopping experiences for consumers, and increased pressure on law enforcement agencies. In an era of booming e-commerce, online marketplaces play a central role in facilitating the sale of goods—both legitimate and stolen. These platforms have increasingly become targets for criminal organizations to resell stolen goods, further complicating efforts to combat organized retail crime. 

The Seattle Metropolitan Chamber of Commerce recognizes the significance of organized retail crime and advocates for policies that streamline cooperation between businesses, online platforms, and law enforcement to ensure a safer and more secure marketplace for businesses and consumers. 

Top 5 Findings from a recent Attorney General’s Office Report on organized retail crime in online marketplaces 

  1. Specialized Teams and Law Enforcement Coordination
    Few online marketplaces have dedicated organized retail crime teams that work exclusively with law enforcement and retail partners to investigate trafficking activities. eBay, for example, has a dedicated ORC team that responds to law enforcement inquiries within 72 hours, making it the best practice that other platforms should emulate.  
  2. Automated and Manual Listing Monitoring
    Online marketplaces employ several methods to detect stolen goods being trafficked on their platforms. These methods include both automated systems and human review. Some platforms use a combination of automated filters and manual review processes to flag prohibited listings, while others incorporate automated checks to detect stolen goods and provide educational resources to users on how to identify fraudulent listings. 
  3. High-Risk Product Identification
    Certain products, such as mobile phones, power tools, and pharmaceuticals are highly susceptible to theft and resale. Top marketplace companies have developed internal systems to identify and flag these high-risk items, ensuring additional scrutiny before such items can be listed for sale. Requiring sellers to be approved before listing certain product categories is recommended best practice. 
  4. Prohibited Items and Seller Vetting
    All online marketplaces have established prohibited items lists, banning items like counterfeit goods, illegal substances, and unsafe products. These platforms also have vetting processes to ensure the legitimacy of sellers, including requiring identification, tax information, and other forms of verification. Stringent seller vetting procedures are recommended, including mandatory identity verification for sellers in high-risk categories. 
  5. Data Sharing and Transparency
    While some online marketplaces have established programs to provide periodic reports about trafficking and stolen goods trends, others have not been as transparent. The lack of regular data sharing inhibits the ability of retailers to protect their inventory from theft and reselling. Platforms should work more closely with law enforcement and businesses to share data about suspected sellers and sales history. 

Opportunities for Advocacy 

This year in Olympia, several bills and budget provisos championed by the Washington Retail Association in partnership with the Bellevue Chamber of Commerce, Challenge Seattle, and the Seattle Metro Chamber have been introduced.  

  • Senate Bill 5060 would provide $100,000,000 for local government grants to hire and train more law enforcement 
  • $50,000,000 (approximately) for local governments to hire more defense attorneys 
  • $10,000,000 (approximately) for local governments to hire retail theft prosecutors 
  • Funding to continue the Attorney General’s Office Organized Retail Crime Unit and Task Force 
  • House Bill 1276 would increase the penalties for mega thieves that steal over $20,000 in product 
  • Senate Bill 5068 would allow law enforcement and prosecutors to hire documented workers 
  • House Bill1095 would allow local governments to adopt funding for law enforcement and prosecutors 
  • Adding concealment within a store to the definition of theft 
  • Making gift card tampering/fraud a criminal act 
  • Allowing license plate readers on state highways 
  • Potential legislation on multiple offenders and repeat offenders 

Next Steps 

  • Schedule a meeting with online marketplaces to discuss adoption of best practices. 
  • Collaborate with law enforcement to ensure streamlined reporting mechanisms. 
  • Advocate for stronger state and federal regulations to support organized retail crime prevention. 

For further information, please contact Sarah Clark at sarahc@www.seattlechamber.com 

And text SEATTLE to 52886 to sign up for advocacy alerts from your Seattle Metro Chamber.