MINNEAPOLIS — After the rise of large, organized smash-and-grab thefts from retail stores in Minnesota and across the country, the CEOs of Target and Best Buy are among several large retailers asking Congress to take action.
A group of 21 CEOs wrote a letter saying they are "concerned about the growing impact organized retail crime is having on the communities we proudly serve."
The group's solution?
Advocating for the INFORM Consumers Act, which is described as "a bill to require online marketplaces to collect, verify, and disclose certain information regarding high-volume third party sellers of consumer products to inform consumers."
Reporter Kent Erdahl spoke to marketing professor George John with the University of Minnesota's Carlson School of Management about the legislation and what it may, or may not, do to help deter thefts.
Kent Erdahl: "I know, sometimes, when you're buying on Amazon or eBay, you'll have verified sellers. Is that what they're advocating for on a larger scale?"
Professor John: "In a sense, yes, they're trying to increase the legal liability of the seller of record, meaning Amazon or whoever sold it to us. This is a general class of legislation we call disclosure legislation. It's a little murky what the net effect of that disclosure will be. In my experience as a marketing academic, most of the time there's not much effect in the marketplace for lots of reasons."
In their letter, the CEO's argue that, during the current wave of attacks, "criminals are capitalizing on the anonymity of the Internet and the failure of certain marketplaces to verify their sellers. This trend has made retail businesses a target for increasing theft."
John: "That's a logical statement, but I don't think it will make much of a difference to your sense of security and my sense of security when we go out and buy something. When it comes to consumer safety, I think what we rely on are our instincts and our perceptions; and our perceptions, our instincts and our judgments about security are going to be minimally influenced by any kind of mandated disclosure. Does that mean we shouldn't do it? No, it's not an argument for not doing it because if it helps a few people... why not?"