During his opening, Durbin urged the FTC to enforce his INFORM Consumers Act, which was signed into law in 2022
WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, today delivered an opening statement at a Senate Judiciary Committee hearing entitled “Beyond the Smash and Grab: Criminal Networks and Organized Theft.” During his opening remarks, Durbin spoke about the prevalence of large-scale theft of retail products that are then resold online, an issue which was addressed by Durbin’s bipartisan INFORM Consumers Act that was signed into law in 2022. Durbin urged the Federal Trade Commission (FTC) to better enforce the INFORM Consumers Act, emphasizing that the agency has not promulgated regulations to implement the law more than two years after its enactment.
Key Quotes:
“This is not a new problem. Back in 2008, I met with Home Depot. They told me the story about a drill that they sold exclusively that was being found for sale new in the box and at a discount by sellers online. It had to have been stolen in some part of the manufacturing or sales process.”
“This is a problem that affects everybody, [through] higher prices, lost jobs, and lost community investment when shops that can’t keep up with the rising cost of theft are forced to close their doors.”
“I’ve worked on this issue for a long time. As Chair of this Committee years ago, I held a hearing on cleaning up online marketplaces to protect consumers from stolen, counterfeit, and unsafe goods. Not long after, Congress passed my INFORM Consumers Act, [a] bipartisan bill I introduced with Senator Bill Cassidy, Republican of Louisiana.”
“This law requires online marketplaces to collect, verify, and disclose information about high-volume sellers who offer new or unused consumer products for sale on the platform… The INFORM Consumers Act is guided by three principles: verification, transparency, and accountability.”
“I am sad to report to you that despite two years since we passed this bill, the Federal Trade Commission has literally dropped the ball on enforcing the INFORM Consumers Act. It has been more than two years since this law went into effect and the Federal Trade Commission hasn’t even promulgated regulations, in two years, to implement it. The FTC has received hundreds of complaints regarding violations of this law, but how many enforcement actions has the agency taken? None.”
“This is unacceptable, and it must change. The FTC has to step up and enforce the law that we passed and the President signed. In the meantime, state and local governments have stepped up efforts.”
“In May, in my home state of Illinois, Cook County’s regional organized crime task force brought together more than 100 law enforcement agencies and over 30 major retailers for a crackdown that resulted in hundreds of arrests across 28 states. That is success we must build on.”
“Federal law enforcement also has an important role to play… Instead of combating crimes like I described, the Trump Administration has diverted critical resources toward the President’s mass deportation agenda. Homeland Security Investigations – better known as HSI – plays a leading role in combatting criminal networks and organized crime, including organized retail theft. But under this Administration, HSI has been diverted towards rounding up immigrants, many of whom pose no threat to our country.”
“These are not the actions of an administration serious about combating crime. Diverting federal resources endangers Americans and leaves us less equipped to target and disrupt criminals, like those in organized retail theft.”
“We have to have an open and honest discussion about the role of the federal government in reducing organized retail crime. I look forward to having that dialogue here today.”
The INFORM Consumers Act directs online marketplaces to verify high-volume third-party sellers by authenticating the seller’s government ID, tax ID, bank account information, and contact information. High-volume third-party sellers are defined as vendors who have made 200 or more discrete sales in a 12-month period amounting to $5,000 or more.
The online marketplaces are required to supply a hotline to allow customers to report suspicious activity such as the posting of suspected stolen, counterfeit, or dangerous products. The bill includes an exception for individual high-volume third-party sellers that permits them not to have their personal street address or personal phone number revealed to the public if they respond to consumers’ questions over email within a reasonable timeframe. The bill’s requirements are implemented by the Federal Trade Commission and violations are subject to civil penalties.
Video of Durbin’s opening statement is available here.
Audio of Durbin’s opening statement is available here.
Footage of Durbin’s opening statement is available here for TV Stations.
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