NJ introduces bill to combat organized retail crime

In response to the surge in organized retail crime across the country, New Jersey lawmakers have introduced bipartisan legislation aimed at cracking down on large-scale theft operations. The measure, introduced on September 12 by state Senators John Burzichelli (D-3rd District) and Holly Schepisi (R-39th District), seeks to establish a dedicated law enforcement unit to combat professional theft rings that target high-demand products, which are then resold on the gray market.

If enacted, the legislation would impose harsher penalties for repeat offenders and ringleaders of organized crime networks. It would also aim to protect consumers from potentially dangerous, stolen products that find their way into the marketplace. Additionally, the bill includes provisions to fight gift card fraud, a growing issue linked to these theft rings. Assembly members Joe Danielson (D-17th District) and Alex Sauickie (R-12th District) have introduced companion legislation in the Assembly.

A Nationwide Epidemic

Retailers across the U.S. have been facing escalating theft, with organized crime rings storming stores and making off with billions of dollars in merchandise. According to the National Retail Federation, the retail industry lost an estimated $112 billion in 2022 due to theft, up from $99.3 billion in 2021. The Department of Homeland Security (DHS) estimates that organized retail crime costs federal and state governments nearly $15 billion annually in lost tax revenue, which translates to an additional $500 in costs per year for the average American family.

“These retail crime rings have become a big business that goes far beyond amateur shoplifting for personal use,” Senator Burzichelli said in a statement. “They are criminal organizations that plan and coordinate large-scale thefts and then convert the stolen products into cash profits on the gray market. In the end, consumers pay the price with higher costs, compromised products, and lost tax revenue.”

Key Provisions of the Legislation

The proposed bill outlines several significant measures to address organized retail crime in New Jersey:

• Enhanced Penalties for Repeat Offenders: Prosecutors could request harsher sentencing for persistent offenders.
• One-Year Look Back for Offenses: The law would allow for a one-year review period to aggregate the value of stolen goods in cases involving multiple incidents, establishing a common theft scheme.
• Stricter Punishments for Crime Leaders: Leading an organized retail theft enterprise would be upgraded to a first-degree crime, and associated tax evasion could lead to second-degree charges.
• Dedicated Law Enforcement Unit: The state would create a unit within the Department of Law and Public Safety to investigate and prosecute retail theft cases, with a $1 million allocation to staff the office.
• Online Sales Regulation: The bill would clarify that the state’s fencing laws apply to online sales of stolen goods.
• Protection for Retail Workers: A new offense of aggravated assault of a retail worker would be introduced to protect employees from increasingly violent offenders.
• Gift Card Fraud: New tamperproof packaging for gift cards and stricter record-keeping requirements for third-party resellers would be implemented to combat fraud.

Industry Support

The New Jersey Food Council, a trade association representing over 1,500 members in the food retail, wholesale, and manufacturing industries, has thrown its support behind the legislation. In a recent op-ed, Linda Doherty, president and CEO of the council, highlighted the risks posed to consumers by stolen goods.

“Throughout our state, products such as baby formula, over-the-counter medication, energy drinks, expensive cuts of meat, seafood, and other high-demand items are ripped off the shelves and resold,” Doherty wrote. “Consumers are put at risk because the safety of those products can no longer be guaranteed when expiration dates are altered, or food items are stored without proper refrigeration.”

Doherty also stressed the impact on retail workers and the need for stronger measures. “Organized retail theft endangers retail workers and customers. Retailers are forced to take unprecedented security measures and prices increase,” she said. “Now it’s New Jersey’s turn to combat organized retail theft, by enacting legislation that directly targets the crime syndicates that threaten our consumers.”

As New Jersey moves forward with this proposed crackdown, it joins at least 14 other states, including New York and California, that have passed similar laws to curb organized retail crime.