StORES Magazine - September 2007 - (Page 116) CONSIDER THIS / INSIDE TRACK NRFnews NRF Targets ORC, e-Fencing & WHO WHAT WHEN THE NATIONAL Retail Federation has proposed a package of model Organized Retail Crime bills, including a measure that would make e-fencing — selling stolen goods through online auction sites or other Internet venues — a crime. The 10-bill package was outlined before two major organizations representing state-level lawmakers, the American Legislative Exchange Council (ALEC) and the National Conference of State Legislatures (NCSL). The legislation would define an online market, make it a crime to commit theft with the intent to resell property in an online market and require operators of online markets to immediately terminate the sale of items when presented with information that they are stolen or were fraudulently obtained. NRF vice president for loss prevention Joe LaRocca told ALEC members that professional thieves are moving to efencing because online sales can net 70 percent of a stolen item’s retail value, compared with 30 percent at a pawn shop or sale on the street. Other proposals include legislation to address the definition of organized retail crime, use of fraudulent receipts, use of an emergency exit to avoid apprehension, theft with intent to resell, patterns of criminal activity and use of devices to defeat store security systems. One bill would make a third theft within 10 years a felony. ORC accounted for between $15 billion and $30 billion in losses last year, according to an NRF survey. Even at the lower end of the range, ORC losses roughly equal the combined national figures for robbery, larceny, burglary and auto theft, LaRocca says. Visa and MasterCard operate illegal price-fixing cartels by setting the interchange rates that all member banks agree to charge their bank-card customers. Interchange fees average close to 2 percent and are assessed every time a credit card or signature debit card is used to pay for a transaction. The practice is largely unknown to consumers because Visa and MasterCard don’t disclose the fee on monthly statements and prohibit merchants from disclosing it on receipts. The banks, operating under the banners of Visa and MasterCard, require merchants to accept the cards, fees and related rules on a take-it-or-leave-it basis, Duncan testified. And, because Visa and MasterCard control roughly 80 percent of credit card purchase volume, retailers cannot afford to refuse to accept the cards, he said. Visa and MasterCard collected more than $36 billion in interchange fees last year, up 17 percent from 2005 and 117 percent since 2001. This year, the amount is expected to top $40 billion. Going Green RETAILERS are making an effort to become “green” and have focused their environmental goals in many directions. While there is not a standard for the industry, some retailers have made attempts to go green on the supply chain efficiency front, others on packaging. NRF’s Green Consortium is a network for retailers to share ideas in a forum that makes sense for the community. “There isn’t a model image for going green in the retail industry,” says Dan Butler, NRF vice president for merchandising and retail operations. “With the networking opportunities of the Green Consortium, vendors, manufacturers and consultants can all work together to share best practices and ideas about how to make their companies more environmentally friendly.” Retailers continuously assess their business model, products and customers they serve by thinking differently and creatively to serve customer needs. Since many customers are also conscious about the environment, they have been very receptive to the green efforts put forth by retailers. The Green Consortium will meet in person two times a year and will connect through a series of conference calls. If interested in becoming involved in the Green Consortium, please contact Dan Butler at butlerd@nrf.com or (202) 783-8143. WWW.STORES.ORG Taking the Interchange Fight to Capitol Hill NRF senior vice president and general counsel Mallory Duncan recently told the House Judiciary Committee’s Antitrust Task Force that interchange practices are a violation of federal antitrust law that will cost consumers more than $40 billion this year. The hearing was the fourth congressional session this year to examine credit card fees, and the first to focus specifically on interchange. Duncan, who chairs the Merchants Payments Coalition, outlined how 116 STORES / SEPTEMBER 2007 Mallory Duncan http://WWW.STORES.ORG
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