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Black market trade “fuelling violence in Melbourne stores”

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Warning comes as illegal tobacco and vape sales surge…

Melbourne retailers are facing increasing violence and intimidation linked to organised crime groups flooding stores with illegal tobacco, vapes and counterfeit alcohol, according to reports in the Australian media.

Theo Foukkare, Chief Executive of the Australian Association of Convenience Stores (AACS), said soaring tobacco excise had helped create a lucrative underground economy increasingly dominated by organised criminal syndicates.

Mr. Foukkare warned that legitimate retailers were being targeted by criminals seeking protection payments or stealing legal tobacco products for resale through illegal channels.

We’ve had retailers that have been held up in broad daylight when customers and staff are in the store, I’m talking at 5pm, so that they can steal legal tobacco products to onsell to the illegal market,” he said.

Retail members have been stood over and threatened to pay protection money or have their stores burnt down.

Industry losses linked to these incidents are believed to have exceeded an estimated $2.5 Billion over the past five years.

The AACS says criminal networks are responsible for supplying the overwhelming majority of nicotine vapes sold illegally across the country. The organisation is now pushing for tobacco excise reform and a regulated retail framework to help curb the growing black market.

The news comes as potentially lethal amounts of dangerous chemicals and plastics were also discovered in bootleg alcohol being sold in Melbourne stores, in what retailers say is the latest sign organised crime groups are expanding their illegal operations.

Against a backdrop of growing concern around organised retail crime, this issue – and the practical steps retailers can take to better protect their front line colleagues – will be high on the agenda at Retail Risk – Melbourne on 13th August.