A group of bipartisan federal legislators in the US has put forward a new bill aimed at addressing the rise in organised crime affecting supply chains and retail businesses.
The Combatting Organized Retail Crime (CORCA) Act was introduced by Congressman David Valadao, with representatives Michael Baumgartner, Lou Correa, Dave Joyce, Laurel Lee, Susie Lee, Brad Schneider and Dina Titus co-sponsoring the proposed legislation.
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The Senate version of the bill is spearheaded by Senators Chuck Grassley and Catherine Cortez Masto.
The CORCA Act is designed to enhance the capabilities of law enforcement agencies in tackling interstate and international criminal activities that target retailers and supply chain operations.
It builds upon the Safeguarding our Supply Chains Act from the 118th Congress, which was also co-introduced by Valadao and Schneider.
The bill comes as there has been a noticeable increase in sophisticated criminal organisations engaging in theft, fraud and other crimes against retail stores and supply chain entities.
Statistics from the National Retail Federation indicate a 93% surge in retail theft incidents between 2019 and 2023, with losses amounting to $121.6bn in 2023 alone.
The proliferation of retail crime often involves organised groups that sell stolen items through both physical storefronts and online platforms. This not only generates illicit revenue but also funds further criminal activities.
The CORCA Act introduces measures to bolster the fight against retail crime, particularly those that cross state lines or involve international networks.
One of the key features of the act is the strengthening of legal tools available to law enforcement, specifically by enabling criminal forfeitures in cases where stolen goods are transported or sold across state boundaries.
The act also broadens the reach of existing money laundering laws and permits the prosecution of groups involved in organised retail and supply chain crimes that use interstate or foreign commerce networks.
CORCA also mandates the establishment of an Organized Retail and Supply Chain Crime Coordination Centre within Homeland Security Investigations (HIS) and the Department of Homeland Security.
Congressman Valadao stated: “Organised retail crime and supply chain theft are hitting families and small businesses hard in the Central Valley and beyond. These crimes are largely run by sophisticated criminal networks that endanger public safety and drive-up costs for consumers.
“In the 118th Congress, I introduced the Safeguarding our Supply Chains Act to fight back against cargo theft, and I’m happy to see some of that language included in this bill. The CORCA Act gives law enforcement the tools they need to hold criminals accountable, and I’m proud to work with my colleagues to get this across the finish line.”
Support for CORCA comes from retailers including Amazon, Kroger Target and Walmart.
Expressing support for the federal bill, National Retail Federation Executive vice-president of government relations David French stated: “ORC [organised retail crime] is a multibillion-dollar crisis impacting retailers, their associates and the customers they serve. ORC is occurring across the retail enterprise – supply chains, bricks-and-mortar stores, warehouses and online – with stolen product sold for a profit, oftentimes to fund other crimes.
“NRF applauds chairman Grassley, senator Cortez Masto, representative Joyce and all of their bipartisan original co-sponsors for their continued leadership to address one of retail’s biggest challenges. We urge Congress to move quickly to approve this integral measure.”
Retail Industry Leaders Association (RILA) public affairs senior executive vice-president Michael Hanson stated: “Organised criminal enterprises are endangering communities across the country through brazen and violent criminal acts that put retail employees and customers in harm’s way. Whether stealing mass quantities of products from retail stores or hijacking consumer goods throughout the supply chain these gangs are wreaking havoc. And these criminal rings use the profits from retail theft to support larger illicit activities such as human trafficking, gun smuggling, narcotics and terrorism.
“In order to expose and prosecute these sophisticated criminal rings, we need federal, state and local law enforcement to be coordinated, which is exactly what CORCA will do.”
RILA government affairs senior director Sarah Gilmore added: “Retail leaders are encouraged there is bipartisan, bicameral momentum to holistically dismantle sophisticated criminal rings that are targeting retailers and communities across the country. RILA is eager to garner additional support and get this critical piece of legislation signed into law.”
