Mike DeAngelis, a spokesman for the CVS drug-store chain, says “our stores have experienced a 300% increase in retail theft incidents since the pandemic began.” In New York City, retail-theft complaints rose by nearly 16% between 2019 and 2021, according to police. The clearance rate, which means when a suspect is arrested or identified, dropped to 28.4% from 48.5% over the same period. In San Francisco, retail theft drove five Walgreens stores out of business last October.

The U.S. Chamber of Commerce’s response is to urge Congress to pass the Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers Act. The legislation would require Amazon, Ebay and other online platforms to verify the identity of any seller who makes 200 or more sales valued at a total of $5,000 or more a year. When a seller passes $25,000 in annual sales, the online platform would have to disclose publicly the seller’s name and current contact details.

Proponents say the law would increase transparency and make criminals think twice before they use the online platforms to sell stolen goods. But it would also increase the regulatory burden on legitimate small businesses. This is a federal attempt to solve what is a state and local failing.