California Gov. Gavin Newsom has signed 10 new bills into law aimed at combating retail crime in the state. The new laws crack down on shoplifting, theft from vehicles, organized theft, and online marketplaces where stolen goods are sometimes resold. Retailers have been calling on both local and federal governments to address the growing challenge of retail theft, which impacts profits, customers, and staff. One bill in the package, SB 1416, establishes tougher penalties for middlemen in organized retail crime rings, in response to a CNBC investigation. The bill targets individuals involved in the sale, exchange, or return of stolen property, increasing prison time and fines for offenders.
Critics of the previous penalties for organized retail crime rings argued that they were not enough of a deterrent. The new law, inspired by the case of Michelle Mack, an organized retail crime “queenpin” exposed in a CNBC investigation, aims to address this. Mack and her husband were sentenced to prison and ordered to pay restitution to retailers they defrauded. The laws aim to combat theft and organized retail crime rings that have been cited by retailers as a reason for lower profits, staff retention challenges, and a degraded in-store experience. However, some have suggested that retailers may be overstating the impact of theft and downplaying other operational issues affecting their profits.
Commercial burglary and robbery rates in California have been rising, along with increasing incidents of shoplifting, although still below pre-pandemic levels. The California Highway Patrol’s Organized Retail Crime Task Force has been active in making arrests and recovering stolen items valued at millions of dollars. Retailers have been urging Congress to address organized retail crime nationally, with efforts to prosecute theft as a federal felony. The push to combat retail crime may also be in response to rising crime rates nationally and political pressure leading up to the 2024 presidential election.
One of the bills in the new package, SB 1144, specifically targets the trafficking of stolen goods on online marketplaces like Amazon. Introduced by State Sen. Nancy Skinner, the bill updates compliance criteria for high-volume, third-party sellers and streamlines the process for filing civil charges against online platforms selling stolen goods. Retailers hope that these new laws will help stem the flow of stolen goods in online markets, where some stolen items are resold. The aim is to make it more difficult for criminals to profit from organized retail theft by cracking down on both the sellers and the platforms facilitating the exchange of stolen goods.
In summary, the new laws signed by California Gov. Gavin Newsom aim to combat retail crime by increasing penalties for offenders, targeting organized crime rings involved in stealing and reselling goods, and addressing online marketplaces that facilitate the trafficking of stolen items. The laws come in response to concerns from retailers about the impact of theft on their businesses and the challenges they face in maintaining profitability and a positive shopping experience. The efforts to crack down on retail crime are part of a broader national conversation about rising crime rates and efforts to address criminal activity on both state and federal levels. Retailers hope that these new laws will make it more difficult for criminals to profit from organized retail theft and protect businesses and consumers from the impacts of these crimes.
