GOVERNMENT AFFAIRS
LEGISLATION INTRODUCED TO CURB RISING ORGANIZED RETAIL THEFT Many of us have seen the widespread smash-andgrab retail crimes happening across our nation and throughout our communities. Wisconsin state lawmakers are taking action by stepping up legislative efforts to try and remedy these unlawful practices that directly and indirectly impact on our state’s economy. State business organizations and lawmakers have asked for the insurance industry to help get involved in the broader legislative effort. Republicans State Senator Roger Roth (R-Appleton) and State Representative Alex Dallman (R-Green Lake) introduced legislation this month that would require online marketplaces like Facebook and Amazon to verify that their high-volume third party sellers are legitimate businesses. Assembly Bill 743 (AB-743) and Senate Bill 710 (SB-710) aim to increase transparency and accountability for online marketplaces amid the rapidly growing problem of illicit goods being sold online. Currently, there is minimal oversight of who and what products are being sold through these virtual marketplaces. Why should the insurance industry care and agents get involved, you ask? Because at a basic level as these unscrupulous practices continue to occur unchecked, there is the potential for increased claims from those business customers that you might insure. The goal is to support efforts like AB-743 and SB-710 that could help mitigate and reduce this type of exposure for your business clients that may fall victim to smashand-grab criminal activity. The legislation as proposed has support from a large swath of Wisconsin’s business community 34 | JANUARY 2022 |
wisconsin INDEPENDENT AGENT
including those from big box, brick-and-mortar retail stores, while strong opposition comes from online marketplaces that include Amazon, Facebook, eBay and others. Similar legislative proposals are being considered by Congress and in other state legislatures across the country. The bill otherwise known as the “Integrity, Notification, and Fairness in Online Retail Marketplaces Act” or the “INFORM Act” establishes more stringent identification and verification requirements for anyone who is considered a “highvolume” seller on online platforms to ensure they are legitimate sellers. The bill includes an exemption for occasional sellers from the requirements of the bill to avoid placing a burden on smaller businesses and individuals who occasionally sell their merchandise online. A high-volume third party seller is defined under the bill as “a third party seller who in any continuous 12-month period during the immediately preceding 24 months has engaged in at least 200 discrete sales or transactions of new or unused consumer products that have resulted in a total of at least $20,000 in gross revenues.” Advocates for the bill highlight that the sale of counterfeit and stolen merchandise is a growing problem for traditional storefront retailers. Organized retail crime syndicates are more frequently using online marketplaces to sell their stolen merchandise. The Coalition of Law Enforcement and Retail estimates that retailers nationwide lose more than $45 billion annually due to organized retail theft and some of this cost has an impact on the
