NJ bill toughens penalties against retail theft
By: Daniel Munoz
NorthJersey.com
USA Today Network - New Jersey
.....A new bill Governor Phil Murphy signed Tuesday [04/01/2025] is designed to toughen penalties for what supporters of the legislation have dubbed "organized retail theft," though reports by media watchdogs have called into question the numbers used to justify that narrative.
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Organized retail theft occurs when coordinated groups of people shoplift form stores and then resell the items outside of official channels.
..... We're all seen the viral videos of smash-and-grab robberies, in which thieves run into stores and destroy display cases or shelves to steal large quantities of goods," Murphy said prior to signing the bill.
..... Murphy pointed to recent examples of such smash-and-grabs," including one in Montclair where hundreds of dollars of merchandise were stolen.
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Those thefts translate to price increases elsewhere for customers, the governor added.
..... "This is not about causal shoplifting, stealing a pack of gum," said John Holub, who heads the New Jersey Retail Merchants Association. "this is about highly professional, highly organized criminal enterprises."
..... But civil rights advocates have questioned whether toughening criminal penalties would actually deter crime, and the extent to which organized theft is taking place.
..... New Jersey is one of 16 states that have passed or introduced legislation toughening rules around retail theft, according to the International Council of Shopping Centers, a retail trade association.
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The National Retail Federation, a trade group, previously pulled back a statistic it promoted that said that organized retail crime accounted for nearly half of retail inventory loss. The number was in fact much smaller, CNBC reported.
..... That came after a 2023 investigation by trade publication Retail Dive, which found discrepancies in the National Retail Federation's data on the level of organized shoplifting.
..... According to Retail Dive, the National Retail Federation in conjunction with private security firm K2 Integrity reported that :nearly half" of the $94.5 billion in 2021's retail losses came form "organized retail theft," when in reality the number was closer to 27%.
..... In 2023, target said retail theft was the driving factor behind a decision to close nine stores in New York city, the San Francisco Bat area, Portland and Seattle.
Surge since COVID pandemic
..... Advocates of the law say that organized retail theft has surged since the COVID-19 pandemic.
..... The Federal Bureau of Investigation reported that retail theft in New Jersey is the highest since the COVID-19 pandemic, but still down compared to its peak in the 1990s.
..... The measure singed Tuesday [04/01/2025] by Murphy has the backing of such business lobbying groups as the National Retail Federation, the New Jersey Business and Industry Association, and the New Jersey Food Council, a trade group for grocery stores.
..... The newly-signed Senate Bill 3587 passed in a 38-0 Senate vote on February 25 [2025] and a 76-0 Assembly vote two days later. Most of the provisions go into effect immediately.
What does the new law do?
..... The new law classifies assault on a retail store employee as an aggravated assault charge which, depending on the severity of injuries, carriers a prison sentence of up to five years and a fine of up to $15,000. that mirrors protections giving to professions such as first responders, bus drivers and judges.
..... The bill also creates harsher sentencing for someone convicted three times of shoplifting within a 10-year period or within 10 years of their release from confinement. And the bill imposes 10- to 20-years prison sentences for leading a retail crime ring.
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Under the new law, the sale of stolen merchandise Online would meet the state's definitions of fencing - buying stolen goods with the intranet of selling them for a profit - so that a person found guilty could face up to six months in prison or a fine of up to $1,000.
..... Starting in six months, retailers that sell gift cards would have to train their employees on how to spot attempts at gift cad fraud. Stores will have to post notices highlighting the potential for Gift card scams.
..... The bill creates tougher packaging standards for chip-less gift cards. And it requires stricter record-keeping for gift cards sold to third-party resellers.
..... Jason Williams, an associate professor of social justice at Montclair State University, said there was some skepticism about "how serious this problem really is in [New Jersey]."
..... "Other states have reacted to those thefts in a knee-jerk manner, influenced by the media's sensational coverage of these crimes during the pandemic," he said.
..... A 2024 report by the Brennan Center for Justice said that national crime data does not support a narrative that larceny such as shoplifting has increased in recent years.