New Jersey Governor Phil Murphy has signed a bill into law setting tougher penalties for retail theft and calling for a dedicated effort to combat organized retail theft.
The new law establishes and upgrades certain crimes related to retail theft, provides that repeat offenders can be sentenced to extended prison terms, addresses gift card fraud, and requires the attorney general to take actions to combat organized retail theft.
The prime sponsors of the bill, which passed unanimously in both chambers, were Senator John Burzichelli and Assemblyman Joe Danielsen.
“There is a near crime wave of retail thefts that are costing businesses and consumers billions of dollars a year,” maintained Senator Burzichelli. “These are not simple cases of shoplifting. The thefts are organized and orchestrated by criminal groups that convert the stolen products into cash on the gray market. In the end, everyone pays a price with higher costs, compromised products and lost tax revenue.”
“No business owner or retail worker should have to fear for their safety or endure the financial loss caused by organized retail theft,” said Murphy.
Attorney General Matthew J. Platkin said the law gives law enforcement “additional ways to better protect New Jersey retailers, their employees, and their customers from victimization.” The law directs the attorney general to “effectively investigate, prosecute, and deter organized retail theft,” which may include establishing a retail theft unit or task force.
The FBI defines organized retail theft as the large-scale theft of retail merchandise with the intent to resell the stolen items for financial gain. Supporters of the bill cited federal calculations that the average American family pays more than $500 annually in additional costs because of organized retail theft.
The new law also classifies attacks on retail employees as aggravated assaults and increases prison terms for “persistent offenders” convicted of two or more offenses of organized theft or receiving stolen property. It creates the offense of fostering the sale of stolen property and provides that the value of merchandise involved in a shoplifting offense may be used to upgrade the offense. The legislation also targets credit card fraud with new requirements for tamperproof cards.
The measure was backed by law enforcement, labor and business groups including the National Retail Federation, the New Jersey Business and Industry Association, and the New Jersey Food Council. They expressed concern about increases in retail theft and violence against employees.
“In recent years, retailers across New Jersey have been targeted by professional, highly organized criminal enterprises. And while retailers are experiencing a higher frequency of thefts overall, even more troubling has been the growing threat of violence,” said John Holub, president, New Jersey Retail Merchants Association. “This legislation not only addresses gift card fraud and prolific shoplifters, but also the safety of our employees.”
Colonel Patrick J. Callahan, superintendent of the New Jersey State Police, cited the deterrence effect of the new law. “This bill is a major step forward in our fight against organized retail theft,” he stated. “By imposing stricter penalties, protecting retail employees, and cracking down on gift card fraud, we are sending a strong message that these crimes will not be tolerated.”
While the industry and officials believe retail theft is increasing, actual trends can be difficult to assess. Most police departments do not report retail theft as a separate category. Data and testimony often come from industry organizations or retail firms themselves.
A survey by the industry’s reported much higher rates of shoplifting and higher dollar losses from theft in 2023 compared to 2019. According to the group’s survey, senior loss prevention and security executives in the retail industry reported a 93% increase in the average number of shoplifting incidents per year in 2023 versus 2019 and a 90% increase in dollar loss due to shoplifting over the same time period.
However, despite spikes in some cities, crime data doesn’t show a nationwide increase in shoplifting and other forms of retail theft, according to the , a nonpartisan institute. A report by the ound that of the 24 cities that reported shoplifting data over the past five years, theft decreased in 17 of them and the frequency in 2023 was below 2018 and 2019 levels.
The Brookings Institute has claimed that the trend of widespread theft is being “greatly exaggerated” and the “current retail theft crackdown” is “not based on actual crime trends nor the evidence on what works to reduce theft.” A points to research it says shows that “neither nor increasing punishments based on second or third offenses meaningfully deters crime.”
“While retailers are rightfully concerned about reducing theft in their stores, the current policy responses could have long-lasting negative consequences on communities—which, over the long-term, will make crime worse,” the Brookings article warns.
The new law brings New Jersey in line with other states including neighboring New York and Pennsylvania that have already enacted similar measures.
Topics Fraud New Jersey
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