Big Box Blame Game

After crushing most independent, ‘main street’ stores, Wal-Mart and other big retail chains are turning their guns on smaller online competitors. They’re asking their allies in Congress for new laws designed to cripple competition from online entrepreneurs.

In the name of preventing “retail theft,” the Wal-Marts of the world are telling Congress that e-commerce is causing dishonest employees and suppliers to steal from their store shelves and loading docks. That’s like blaming the back seat of cars for causing teenage sex.

Even the lobbying arm of the big box retailers, the National Retail Federation, knows this is a bogus claim. Their own 2005 study showed that most retail theft comes from a store’s own employees. Nevertheless, retailing giants and their lobbyists want new laws to hold e-commerce responsible for their own unwillingness to screen employees and spend more on security.

· HR 6491, the Organized Retail Crime Act, would make it a crime if a marketplace doesn’t pull listings when a competing retailer claims they have evidence of theft. This is just asking for abuse:  A high-markup retailer can claim that a particular item just HAS to be stolen “because it’s selling for less than my cost!”, and marketplaces like eBay and Overstock would have to pull the listing.

• HR 6713, the E-Fencing Enforcement Act would require marketplaces to conduct investigations if a retailer provides a police report--dated anytime in the last year— claiming theft of goods similar to an online listing. A big-box chain could file a police report for theft of baby formula, then use this report to force online marketplaces to investigate every listing of baby formula – even by mothers whose newborns just can’t stomach the formula samples they brought home from the hospital!

These bills would impose extraordinary and discriminatory restrictions on Internet marketplaces that help millions of people to legitimately buy and sell products every day – at big discounts. Amazingly, only Internet sites are targeted by these bills, while newspaper classifieds and other “off-line” flea markets are not even mentioned.

The proponents of these bills say they’re about loss prevention, but they're really about competition prevention—preventing online marketplaces from competing with big retailers.

Steve DelBianco

Executive Director, NetChoice

UPDATE: Thank you for all the commenters below that were directed to this blog post by eBay's Main Street grassroots campaign. We appreciate all your efforts to fight against federal legislation that would impose extraordinary and discriminatory restrictions on Internet marketplaces.

Comments

[Philip Doolittle]

I ask and recommend that you vote against BILL(S) #HR 6491 & # HR 6713. They are not fair and would cause me financial harm.

[Katheryne Dishner]

I ask that you vote AGAINST BILL(s)
# HR6491 AND #HR 6713

[Angela]

Please do not vote Bill(S) #HR6491 & #HR6713 in. Wiping out the "little guy" in retail & wholesale is simply not right. America was founded & based on the "little guy" in retail & wholesale industry. Slowly, government is wiping out what America stands for & for whom. The Constitution is no longer for the people by the people, it is for the government by the government. That is so wrong.

[karmand,oscar]

Internet is the only place left for us to inform our selves, express our ideas, and to buy products form big and not to big business
So I ask the government to hands off the people business

[Jason]

I plan the american dream working for myself. If feel that dream is coming to an end. I don't want to that to end. People here wants to dream big. You are just ending everybodies hope to dream big life. Big companies profits, individual losing big. Don't do that to us. Please.

[mmclau]

I live in a small town on a limited income. Half the books on my shelves now were purchased at steep discounts on Amazon and other marketplaces. I want the online sellers to be honest business people, but I don't want the government intimidating them or driving them out of business on behalf of the retailers.

[Roy]

Internet is a very important way to buy and sell any kind of products, secure, easy, confidential and private, companies like Wal-Mart they don’t care if e-commerce is causing dishonest employees the main reason of all this is because they don’t want competition, like consumer and retail seller I ask and recommend that you vote against BILL(S) #HR 6491 & # HR 6713.

[rocky]

You have got to be kidding me. As if Wally World does not make enough profit they have to try to squash those trying to make a living on the net?? Whatever happened to free enterprise in America. I live in America and have not chosen to live in another country because of the opportunity of free enterprise in this great country. I cannot believe our government has actually drafted let alone is considering legislation of this sort!! Big Brother needs to get their hands out of true entreprenuership in this country before it is to late for the little guy. Ask yourself this how many citizens of this great country work for "small business"?? You put them out of work and guess what... Wally World will have no customers because there will be no income to spend at Wally World!!

[Dixie]

I don't want to turn this into a political thing, but who you vote for this year is going to have a huge impact on this type of thing. Walmart has gotten bolder and bolder under this administration, and don't think it's going to change if McCain is President. The people are the last thing this party thinks about, it's big business all the way. You can have some say over what happens to you if you go vote the right way this year. It's time to take back the power of the people, and businesses that operate like Walmart need to be brought down to earth. Their prices get higher all the time and they keep lying to you that they're rolling them back. Of course their scared, they want to be the only choice in this country. Wake up America!

[Dixie]

I don't want to turn this into a political thing, but who you vote for this year is going to have a huge impact on this type of thing. Walmart has gotten bolder and bolder under this administration, and don't think it's going to change if McCain is President. The people are the last thing this party thinks about, it's big business all the way. You can have some say over what happens to you if you go vote the right way this year. It's time to take back the power of the people, and businesses that operate like Walmart need to be brought down to earth. Their prices get higher all the time and they keep lying to you that they're rolling them back. Of course their scared, they want to be the only choice in this country. Wake up America!

[Donna H]

My profession is in human resources (and very qualified). I've been looking for a job for over a year. The reason I cannot apply for them is because they all say "bilingual required" or "bilingual preferred". In Indiana? hmmm. I am a legal U.S. citizen, but I cannot work because the illegal immigrants cannot understand the English language. Wow, that's really fair to me, thanks. The small income I make on eBay has been helping me pay my credit card and a couple other monthly bills. Without that, I'd have collectors at my doorstep. (I hope at least they'd speak English.) I loved Sarah Palin's speech on 9/3/08 when she said she sold the governor's expensive jet on eBay!! Hurray Sarah! McCain/Palin will definitely support the internet small business. eBay is all I have right now, plus it's keeping me from depression, because it's also a lot of fun.

[Ethan Horisk]

I would say that the online retailers would have to counter by exemplifying the theft and fraud that the BIG BOX stores engage in when employing underage slave labor in foreign sweat shops. If they are so interested in pursuing fraud and theft, then they should look in the mirror first. It is in this manner that they are able to maintain their low prices as opposed to someone honestly selling at a low price on the net.

[Tony]

Looks like Walmart wants to kill every business in America.
It's amazing to me how this company is walking across the US and stepping on and demanding anything they want.
I'm just happy our community said "NO" when they wanted to build a store in our area.
But let's be honest, America has been hijacked by Corp America and Walmart wants to stop the Dems from taking control. Your choice America !

[jeff]

OBAMA will say anything you want to hear. DO NOT TRUST HIM!!

[Howard]

I don't need to vote for a Muslim terrorist because they want me to THINK they care anything about us little guys. (see what they did to Hillary) Being over 65 I feel comfortable shopping on ebay. There is NO loud high pitched music here to rattle my brain & I can read descriptions, ask & get questions answered. Maybe after Sarah Palin & John McCain get in office & get some conservative judges to lock these damn thieves & thugs up Walmart won't have so many thefts & we will be able to shop out in public as well as eBay without getting rolled again. Osama wants gun control & high taxes. With either or both we may just as well stay home & die safely in peace. If we get to shop safely & enjoy spending, it is going to be on ebay.
This old fart served 4 years for somebody's freedoms & even had to learn how to use a Computer to do our shopping. Leave us to the American way. Have Government stay out of our shopping cart.

[J&D Productions]

It's seriously sad that our government thanks to the Republican leadership has went from for the people by the people to for Big Business supported by the people's backs and pockets. Wal-mart and places like them need to take care of their own theft problems. It is a waste of tax payer dollars and not in the best interest of the people of this country that the government penalize small business (even if it's a home business) for selling items at a competitive price.

[Unknown_1]

Employee theft has been a problem with any business that has had employees for hundreds of years (maybe thousands¿¿)!! Get a reality check, regulating the internet won't even slow it down.

[Bob T]

Does that mean that Costco can stop me selling items that I have purchased at thier store. I have seen items at Costco that are priced so low that one could make money by buying at Costco and selling on ebay - even after paying State taxes. My review of eBay leads me to believe that there are people who do this for a living. The items being sold, like a set of golf clubs, are usually priced as a buy it now with a reserve that is above Costco's selling price. That is what the free market is all about.

[Bob DeNiro]

WE ALL KNOW AT THIS POINT , THE GOVERMENT HAS BEEN RANSACKED BY THE OIL MEN.(WE ELECTED MOSTLY LAWYERS TO RUN BOTH HOUSES,AND KEEP CHECK ON THEM,...."THAT" WAS STUPID.... ONLY THE RICH WILL CONTINUE TO PROFIT FROM THIS RECESSION-DEPRESSION AS THINGS CONTINUE TO GET WORSE,(THE STOCK MKT. FELL 340 POINTS YESTERDAY)..THE WORLD HAS LOST FAITH IN THE U.S.& ITS DOLLAR, (WHICH MEANS IMPORTED GOODS WILL COST EVEN MORE)...... SO BUSH "GAVE AWAY ANOTHER BILLION TO GEORGIA,(THE COUNTRY NOT THE STATE, STUPID), TO INSURE RUSSIA WILL REALLY HATE US. & A BILLION TO SOME OTHER CAUSE-COUNTRY , FOR SOME REASON, BECAUSE HE CAN... THANKS TO CURRENT FAILED GOV. POLICIES, THE BURUCRATS CONTINUE TO PLUNGE THE COUNTRY FURTHER & FURTHER INTO DEBT.(WHEN A FAMILY IS BROKE THEY DON'T KEEP SPENDING!).. ITS COMMON SENCE)....THE SUPER RICH WILL BUY UP LAND, FARMS, CARS AND ANYTHING ELSE THE MIDDLE & LOWER CLASS CAN'T HANG ON TO FOR "PENNYS ON THE DOLLAR."THEY", THE RICH,.. ,OF ALL PEOPLE ,SHOULD BE "GLAD" E-BAY EXISTS! THEY CAN BUY OUR ANTIQUES, "OLD" FAMILY ANTIQUES,CARS,.. ETC. AT BARGAIN PRICES ON E-BAY. (WE ALL KNOW RICH PEOPLE ARE BASICLY CHEAP-ASS'S),ALOT OF PEOPLE ARE OUT OF WORK NOW & MORE IN THE FUTURE ,AND ARE SELLING ALMOST ANYTHING, at bargain prices, (that doesn't mean its stolen!)... , E-BAY IS ALL SOME HAVE LEFT FOR AN INCOME, TO SAY ITS STOLEN STUFF , IS THE "POT CALLING THE KETTLE BLACK", (THEIR LOBISTS ARE HELPING THEM STEAL FROM US,(LEGALLY), & GIVE TO THE RICH),. I HAVE BEEN TOLD...70-80% OF WAL-MART'S HARD GOODS ARE MANUFACTURED IN CHINA NOW.., WHICH HAS A "NOT SO GOOD" PAST RECORD OF ALMOST NO WAGE-CHILD LABOR.. "WAL MARTT" ,(AND ANY BIG COMPANY WILL ALWAYS HAVE THEFT PROBLEMS, ITS JUST PART OF BUSSINESS,....ITS JUST AN EXCUSE TO WIPE OUT E-BAY!!! .. ARE WE GOING TO SIT IDLELY BY & LET "WALLY WORLD" WIPE OUT ALL COMPITETION!!!(OUR REPRESENTIVES ARE LETTING THIS HAPPEN!)... IN THE PAST IT WAS CALLED A MONOPOLY? WHAT EVER HAPPENED TO THOSE ANTI-MONOPOLY LAWS??

[Alex Hall]

Unknown_1: the reality check isn't that regulating the internet won't slow down retail employee theft. That claim is the clever disguise of this legislation. The real effect of it will be to strangle competition under that disguise.

It's amazing such incredibly illogical ideas can be spun into bills that are taken seriously. "The internet makes my employees steal." Oooh, that big, dishonest internet.

Uh, no, a person's own basic dishonesty is what makes them steal.

The weird thing is that if this passed it would ironically only reinforce irresponsible employee ideas - because it assumes employees are not responsible for stealing. Dishonest employees who see this message would steal more, because it's not their fault, they can't help themselves, THE EVIL INTERNET MADE THEM DO IT!

THE INTERNET IS THE NEW _SATAN_!!

But seriously, I oppose these bills.

[rs307]

To Donna H. above:
The plane was listed on EBay 3 times and did not sell. It was eventually sold to a contributor for a loss. (See Snopes.com)
To Howard above:
It is so sad that some American voters actually believe Bin Laden is running for president. You might want to pay better attention. Watch some other channel than FOX. Listen to some other radio station than Rush. There is truth out there on the air waves. You only have to want to know the truth.
Back to this issue:
It is sad that Walmart and possibly other large chains are trying to impose a Chinese market on Americans. I find it difficult to find anything that is actually made in the United States anymore. We are shipping so many jobs overseas and also bringing in people on (H1b and L1) work visas to take jobs that haven't been shipped out, it is no wonder that so many of us can't afford to buy at American stores and end up having to buy from Walmart. It is a vicious cycle. We need fair trade, not free trade if we want the economy of this nation to improve. It is not a partisan thing. Both parties have signed on to NAFTA and CAFTA. We need to renegotiate these treaties to make them fair.

[Miles McIntosh]

Made in the USA. That's what we need. Shame on Walmart! Please vote against the bills. I think that anything made in china should be banned from E-Bay.

[Retail Worker]

I oppose both bills. The biggest internal theft is nothing more than the wasted overhead spent on the numerous Regional Vice-Vice presidents and District managers. Many box retailers have reached their market potential and still make 20-40% margin across the board.

[Tom]

For those of you who want to make this a political issue do some research and see who wrote these two bills. Bill H.R. 6713 was written by Congressman Robert C. Scott democrat of VA. Bill H.R. 6491 was written by Rep. Brad Ellsworth democrat of IN. To me if your other arguments are correct then it is the Democratic party which is serving as Big business's puppet. These bills should not see the light of day.
I do believe we need fair trade with other countries and not free trade.
As for selling the jet in Alaska for a loss it is called depreciation. Try buying a car and then try to sell it 2-4 years later for a profit. It is not going to happen.

[JAN OSBORN]

ALOT OF DISABLED PEOPLE SELL ONLINE RATHER THAN COLLECT FROM THE GOVERNMENT. WALMARTS IDEA WOULD BE COSTING TAX PAYERS MILLIONS OF DOLLARS.
THIS COULD BE THE PRIME WINDOW OF OPPORTUNITY FOR WALMART. THEY SHOULD ATLEAST CONSIDER WORKING WITH EBAY AND OTHER ONLINE STORES. THEY COULD BECOME A HUGE OUTLET FOR ONLINE SELLERS TO PURCHASE FROM, IN QUANTITY. DON'T BEAT US, JOIN US. WE CAN HELP YOU, TOO !!