Law to Combat Retail Crime in California
California Governor Gavin Newsom has recently signed ten new bills into law to combat retail crime in the state. The package of laws aims to crack down on shoplifting, theft from vehicles, organized theft, and the online resale of stolen goods. Retailers have called for increased government action against retail theft, as it has been a growing challenge impacting profits, customers, and staff.
One of the bills, SB 1416, introduces tougher penalties for middlemen involved in organized retail crime rings. This bill was a response to a CNBC investigation that exposed the extent of organized retail crime. Prior to the law’s passage, those involved in these crime rings faced up to three years in prison, but critics argued that this punishment was not a sufficient deterrent. The new law establishes additional prison time and fines for the sale, exchange, or return of stolen property.
The inspiration for SB 1416 came from the case of Michelle Mack, known as the organized retail crime “queenpin,” who was exposed in the CNBC investigation. Mack made millions by reselling stolen goods on Amazon at significantly reduced prices. She was eventually arrested and sentenced to five years and four months in state prison. Mack’s case highlights the need for stronger laws to target middlemen involved in these criminal operations.
Retailers have been vocal about the negative impacts of theft and organized retail crime rings. They cite lower profits, difficulty in hiring and retaining staff, and a degraded in-store experience as consequences of these criminal activities. However, critics argue that retailers may be exaggerating the impact of theft and downplaying other operational issues that contribute to lower profits.
Data from the Public Policy Institute of California shows that commercial burglary and commercial robbery rates in the state have been steadily rising in recent years. Shoplifting has also seen an increase, although it is still below pre-pandemic levels. In response to this rising trend, the California Highway Patrol’s Organized Retail Crime Task Force has made significant arrests and recovered over $7.2 million worth of stolen items since the beginning of the year.
Retailers have been urging Congress to take action against organized retail crime on a national level. The National Retail Federation, a retail lobby group, has been pushing for theft to be prosecuted as a federal felony. This lobbying effort reflects the industry’s desire for a coordinated approach to combating retail crime.
While the crackdown on retail crime is seen as a positive step, some critics express concerns about the potential disproportionate impact on marginalized groups. As Democrats aim to appear tough on crime in the lead-up to the 2024 presidential election, it is essential to consider the potential unintended consequences of these measures.
Another bill, SB 1144, aims to prevent the trafficking of stolen goods on online marketplaces like Amazon. It updates compliance criteria for high-volume, third-party sellers and makes it easier to file civil charges against online platforms selling stolen goods.
In conclusion, the new legislation signed by Governor Newsom marks a significant effort to combat retail crime in California. The laws target middlemen involved in organized retail crime rings and aim to prevent the online resale of stolen goods. While retailers applaud these measures, concerns remain about the potential impact on marginalized groups. It is crucial to strike a balance between addressing crime and ensuring fairness in the criminal justice system.
