December 20, 2005

Hon. Monte Kwinter, MPP
Minister of Community Safety and Correctional Services
25 Grosvenor Street, 18th Floor
Toronto, ON M7A 1Y6

Dear Minister Kwinter:
On behalf of Retail Council of Canada (RCC) and our members operating across the province, I am writing to you regarding the sale of stolen goods. RCC has been the Voice of Retail in Canada since 1963. Our more than 9,000 members embrace all retail formats, including department, specialty, discount and independent stores, and online merchants. More than 90% of our members are independent storeowners. Collectively, RCC members account for more than two-thirds of Canada's general-merchandise retail market.

Retailers do not have any concerns with the legitimate sale of second-hand goods, whether they take place in flea markets or elsewhere. However, we are concerned that these operations can provide a channel for the sale of stolen merchandise.

Retailers expect to operate their businesses on a level playing field. They find it extremely difficult to remain competitive while unscrupulous individuals sell stolen merchandise. To add insult to injury, retailers observe that often these flea markets operate adjacent to legitimate businesses, selling stolen merchandise at less than cost; often not charging or remitting PST or GST. Hardest hit are the smaller retailers. Legitimate flea market vendors are also disadvantaged when illicit vendors display and sell stolen product at impossible-to-match prices. In the end, the cost for these illegal practices is borne by the consumer through higher prices.

Retailers invest significant resources in order to prevent theft. Unfortunately, conventional retail loss prevention practices are not a significant deterrent for the experienced professional criminal. A key to controlling the activity of organized theft rings is to shut down the means they use to dispose of stolen merchandise. The proliferation of flea market vendors selling stolen merchandise is a particular problem area.

As you may be aware, the City of Toronto recently met to discuss proposed amendments to the City's Municipal Code, Chapter 545, Licensing, regarding Second-Hand Goods, Salvaged Goods, Old Gold, Pawnbrokers and Collectors. RCC is in support of these amendments. Please find attached a letter to Mayor David Miller on this subject, for your information. We commend the City and the Toronto Police Service for taking decisive action and encourage you to examine the possibility of introducing provincial legislation to combat the sale of stolen goods.

The precedent for a provincial approach was set by Nova Scotia with their passage of Bill 30, An Act Respecting the Sale of Certain Items at a Commercial Flea Market. RCC was supportive of the Act and we would be pleased to work with you and your government to develop options to address this issue; the cost of allowing organized crime to thrive through the sale of second-hand goods is too great to be ignored, for both legitimate businesses and to the greater community at large.

If you require any further information, please do not hesitate to contact me directly at (416) 922-6678, extension 225.

Sincerely,

Ashley McClinton
Director, Government Relations (Ontario)

cc: His Worship David Miller, Mayor, City of Toronto
Honourable John Gerretsen, Minister of Municipal Affairs and Housing
Mr. William Blair, Chief of Police, Toronto Police Service
Detective Brent Lake, Badge #596, Toronto Police Service
Ms. Ashley Dent, Senior Advisor-Policing, Office of the Minister
RCC Loss Prevention Committee