Keystone Today

Across the nation, there is a trend involving flash mob gangs who have been stealing items from busy stores and then selling the goods online.

Retail Industry Leaders Association Executive Vice President Jason Brewer hopes that something can be done to alleviate the problem, and there is currently a bill in the Pennsylvania House that could help, if passed.

Pennsylvania House Bill 1594, known as the INFORM Act, has been introduced in the State Legislature. The bill would make it more difficult for stolen goods to be sold online through requiring verification from sellers on online platforms and marketplaces, using information like business IDs and addresses of operation, according to a report by Keystone Today. The last action on the bill was in June when it was referred to the Committee on Consumer Affairs. 

“Third-party marketplaces like Amazon and Facebook have become a lucrative hub for criminals looking to anonymously sell massive quantities of stolen goods, and until we address how easy it is to sell stolen products, retailers and law enforcement believe the problem will only grow worse,” Brewer told Keystone Today.

According to Brewer, retailers invest heavily to to stop theft, but often the resale of the stolen product is being overlooked. He said once goods are stolen from a store, criminals are turning to those third-party marketplaces to quickly and anonymously sell stolen products to unaware consumers.

The Wall Street Journal reported that Facebook prohibits the sale of stolen items, and Amazon doesn't allow the listing of stolen goods from sellers. An Amazon spokesperson said the company works with law enforcement to hold sellers accountable.

The New York Post reported on Nov. 21 that about 25 cars blocked the street and rushed into the Walnut Creek Nordstrom in California, where they stole merchandise before making a getaway. 

On Dec. 3, The Wall Street Journal reported that this is a problem nationwide, and retailers like Home Depot and Best Buy, as well as law enforcement agencies, have been increasing security measures around the holiday season in response to the recent robberies. In the Minneapolis suburbs, three Best Buy stores were robbed in flash mob style over Thanksgiving weekend. In a Nordstrom near San Francisco, about 90 people stole from the store at once. It was reported that stores from Chicago to Los Angeles have been robbed by flash mobs.

The Wall Street Journal in September headlined a major investigation into a $45 billion stolen goods scheme where stores like CVS, Walgreens, Home Depot, Walmart and others were victims of flash mob thieves. Retailers are spending millions to try to curb this problem.

“It is a menace that has been supercharged by the pandemic and the rapid growth of online commerce that has accompanied it. We are trying to control it the best we can, but it is growing every day,” Ben Dugan, the top investigator for CVS, told The Wall Street Journal.

According to The Wall Street Journal, the National Retail Federation estimates that organized retail crime costs businesses an average of $700,000 per $1 billion in sales.