Big Retailers Pushing Legislation To Harm Online Retailers

from the why-compete-when-you-can-legislate? dept

Fri, Feb 27th 2009 11:31am — Mike Masnick

Why should you compete with new technological innovations when you can just get elected officials to pass laws that greatly limit what those innovations can do? That seems to be the position of the National Retail Federation, the trade group that represents a bunch of the big offline retailers. We wrote about their attempt to do this last year, where they went so far as to claim (and then stand behind) that eBay was driving people to shoplift. Supposedly, selling stuff on eBay was just so addictive that once people ran out of their own stuff to sell on eBay, they would all rush to the nearest big box store to shoplift. That, of course, is totally bogus and not at all backed up by the facts. But who needs facts when you have politicians willing to do your bidding? The NRF's statement was so hilarious, we can't resist republishing it:

"Thieves often tell the same disturbing story: they begin legitimately selling product on eBay and then become hooked by its addictive qualities, the anonymity it provides and the ease with which they gain exposure to millions of customers. When they run out of legitimate merchandise, they begin to steal intermittently, many times for the first time in their life, so they can continue selling online. The thefts then begin to spiral out of control and before they know it they quit their jobs, are recruiting accomplices and are crossing states lines to steal, all so they can support and perpetuate their online selling habit."

While the three laws proposed last year went nowhere, it didn't take long for all three to be introduced again. The intended purpose of these three laws is to force these online platforms to interrogate every seller over every product they put online for sale. It goes against everything that's the basis of section 230 rules for online platforms, in that it says "you're not the tool someone uses, now you're liable for everything that happens with the tool." This is not, at all, about stopping crazy eBay addicts from shoplifting from big box stores. This is about making it tougher for people to buy and sell stuff online so that more people are forced to trek out to their local offline retailer to buy stuff.

The amusing thing is that, last year, when these same bills were introduced, the retailers were asked why they couldn't just do a better job policing their stores for shoplifting -- and the retailers replied that their employees were there to sell stuff, not to be police officers. Yet, the very purpose of these laws is to make that impossible for online retail services. It forces them all to be police officers, or face tremendous liability. It's no secret that it's tough to compete with new online services, but that's no excuse for passing bogus laws to harm those online players.

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Filed Under: competition, e-fencing, online auctions, politics, retail stores, shoplifting

15 Comments

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Peavey, 27 Feb 2009 @ 11:35am

boycott
When I find out which retailers are part of this federation, I'm going to boycott them indefinitely... unless Costco is involved!

Damn, I love Costco!
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- Retailer, 28 Feb 2009 @ 7:16pm
  
  Re: boycott
  Peavey, I'd like to know where you're going to shop...
  
  "NRF represents an industry with more than 1.6 million U.S. retail companies"
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Ima Fish, 27 Feb 2009 @ 11:42am

When the music industry could not make the reselling of used CDs illegal, they did the next best thing. They made it difficult and very cost ineffective to buy and sell used CDs.

In Florida, the new legislation requires all stores buying second-hand merchandise for resale to apply for a permit and file security in the form of a $10,000 bond with the Department of Agriculture and Consumer Services. In addition, stores would be required to thumb-print customers selling used CDs, and acquire a copy of state-issued identity documents such as a driver's license. Furthermore, stores could issue only store credit -- not cash -- in exchange for traded CDs, and would be required to hold discs for 30 days before reselling them.

Let's hope the online retail industry is much more organized and better represented than the used CD industry.
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- :Lobo Santo, 27 Feb 2009 @ 12:00pm
  
  Re:
  In short; all corporate to customer contracts say
  "we screw you; no screw-backs"
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- interval, 27 Feb 2009 @ 1:42pm
  
  Re:
  I'm a little surprised that the florida voters didn't laugh this out of the legislature. Then again, knowing just how asleep the American public is, I can't be surprised. Nor should we all be surprised just how cheaply our state representatives can be purchased for.
  
  "What a world, what a world..." I murmured as I melted into the pavement.
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Anonymous Coward, 27 Feb 2009 @ 12:17pm

National Retail Federation
Is this Neil Troutwines group?
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Anonymous Coward, 27 Feb 2009 @ 12:25pm

I have no doubt that people steal stuff from stores for the purpose of reselling it on eBay. However, the second part of that is not going to change even if eBay disappeared. People would just sell it elsewhere.
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- Anshar (profile), 27 Feb 2009 @ 12:43pm
  
  Re:
  Precicely. They're acting as if stealing and selling stolen goods is a phenomenon new to the online retail age.
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Anonymous Coward, 27 Feb 2009 @ 12:54pm

Cart before the horse, or an attempt to regulate your competitor?
Retailers need to fix their internal theft problem before whining for help. Yes, Internal theft. As in some 70% of all theft is performed by internal employees.
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Liberty Dave, 27 Feb 2009 @ 1:00pm

Wow
This is just BEYOND ridiculous.

Absolutely...beyond...ridiculous. I don't really know what else to say.
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funny, 27 Feb 2009 @ 1:28pm

Solution.
I think the appropriate solution would be to shoplift everything we can in every store and watch the employees all get fired for not stopping us. And if we get caught for shoplifting tell the authorities that it was too hard to buy things online, so the next best thing was to steal everything we wanted because it was too inconvenient to pay at the front of the store.
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Me, 27 Feb 2009 @ 1:44pm

Employees Are The Thieves
ImaFish that's Florida. No sense there. Employees are the biggest thieves. But don't try to stop them retailers focus on the customers. Brilliant.
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Anonymous Coward, 28 Feb 2009 @ 4:08am

please provide a list of these Big Retailers that are doing this so we can add them to our boycott lists!
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Weird Harold, 1 Mar 2009 @ 1:17pm

Ask 1000 people who are use to getting music for nothing, download movies for nothing, and so on if they would support laws that would make it harder for them to get stuff for free, guess what? You will get 99% against.

It's impressive only that someone bothered to do the survey.
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nethosting.89, 26 Jun 2009 @ 11:35pm

Dedicated Hosting
I totally agree with funny's word.I have no doubt that people steal stuff from stores for the purpose of reselling it on eBay. However, the second part of that is not going to change even if eBay disappeared. People would just sell it elsewhere.This is truly innovative and insightful information- thanks a lot for the post.
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