Wednesday, February 25, 2009

Tech Groups Blast Retail Crime Bills

High-tech groups and companies are hot and bothered over legislation introduced Wednesday that they fear will treat Internet marketplaces in a discriminatory fashion in response to retailers claims that stolen goods are being resold through sites like eBay and others. The bills, which were introduced by Sen. Richard Durbin, D-Ill., Rep. Brad Ellsworth, Ind., Rep. Bobby Scott, D-Va., and are intended to address weaknesses in federal law that criminals have exploited to grow criminal enterprises. The measures were hailed by the Retail Industry Leaders Association.

Computer and Communications Industry Association President Ed Black said he is worried that the bills will undermine user privacy, and threaten to erode Internet service provider immunities that help Internet innovation thrive. "At a time of financial duress and economic contraction, the last thing we should be doing is attacking innovative e-commerce services," Black said. EBay Vice President Tod Cohen said he believed the bills "are less about fighting shoplifting and more about big box retailers wanting to crush legitimate small-business online competition." NetChoice Executive Director Steve DelBianco added he has "heard this song before, and it's getting old."

But the RILA disagrees. Organized retail crime involves sophisticated crime rings that move from store to store stealing large quantities of goods. The stolen merchandise is then sold, often to unknowing customers, through flea markets, swap meets, pawn shops and, increasingly, on Internet auction sites, the group said. RILA Senior Vice President John Emling said the bills will give law enforcers the tools they need to stop the scourge and protect consumers from unknowingly purchasing fraudulent or unsafe goods.