Organized retail crime — the coordination and large-scale theft of retail merchandise with the intention to re-sell, often online — cost retailers an average of roughly $720,000 per $1 billion in sales in 2020, according to a survey by the National Retail Federation.

Solving a problem of this size requires bringing together companies and law enforcement agencies. That’s why eBay partners with other retailers and local, state and federal authorities to identify and dismantle retail crime rings.

It’s part of our effort to ensure Americans can feel confident about shopping on eBay. We know it’s not enough to simply remove fraudulent items after they’ve been posted. Instead, we’re working to prevent those listings from ever going live by addressing the root cause of organized retail crime.

Long-Standing Program

In 2007, eBay launched the Partnering with Retailers Offensively Against Crime and Theft (PROACT) program, where retailers and law enforcement work together to identify, remove and prosecute sellers of stolen products. More than 300 retailers have joined the program to help protect eBay and its community. Distinct among online marketplaces, PROACT has helped crack down on widespread ORC cases worth millions of dollars — from New York City to Oklahoma.

The program was essential in prosecuting a large-scale ORC incident in New York City in 2022. Over several years, a sophisticated crime operation profited millions of dollars from reselling stolen luxury clothing, goods, gift cards and drug store items on our platform. eBay partnered with the New York City Police Department’s Grand Larceny Division and the Office of the Attorney General’s Organized Crime Task Force to conduct a three-year investigation into the crimes. Prosecutors charged 41 individuals for their involvement in the operation, and law enforcement seized more than $3.8 million worth of stolen retail items.

Recently, eBay collaborated with CVS to link a group of repeat shoplifters to a pawn shop in Philadelphia, which eBay had flagged as a suspicious account. While the case is ongoing, investigators at CVS and eBay found that the pawn shop was running a multi-million-dollar crime ring across several states. This is not an isolated incident — CVS has lost about $200 million from stolen goods since 2020. Work with organizations like eBay helped prevent an estimated $50 million from being stolen at CVS stores last year.

Advocating for Legislation

eBay also supported the passage of the Integrity, Notification and Fairness in Online Retail Marketplaces for Consumers, or the INFORM Consumers Act last year. The law helps prevent the online selling of stolen goods and promotes transparency by requiring high-volume sellers to disclose certain information to the platform and their buyers. Platforms must also provide a way for customers to report suspicious activity.

We’re proud of the work we’ve done to combat organized retail crime, but we know there is more to do. eBay will continue to partner with law enforcement, retailers and other partners to keep our consumers, sellers and marketplace safe.