Listen to this article

New Jersey is taking steps to protect businesses from organized retail crime.

Under a law signed April 1 by Gov. Phil Murphy, the state Attorney General’s Office will create a new law enforcement unit. The group will target professional theft rings, which methodically move from community to community stealing high-demand products and selling them on the gray market.

Other aspects of the newly enacted measure include:

• Establishing assault of a retail business employee as an aggravated assault. Chargeable as a third- or fourth-degree crime — depending on the severity of injuries
• Upgrading the charge of leading an organized retail theft ring to a first-degree crime
• Increasing the penalty for failure to pay taxes as leader of said enterprise to a second-degree crime
• Extending terms of imprisonment for repeat offenders convicted multiple times of retail theft

Additionally, the law requires merchants that sell gift cards to ensure the products come enclosed in secure packaging. They also must display a consumer notice related to gift card fraud provided by the Division of Consumer Affairs.

After signing the bill, the Democratic governor commented, “No business owner or retail worker should have to fear for their safety or endure the financial loss caused by organized retail theft. Over the past few years, we have worked to crack down on organized retail theft, which threatens livelihoods and public safety. With today’s bill, we are taking decisive action to combat this growing threat and protect businesses and workers statewide.”

‘A major step forward’

New Jersey joins more than a dozen states that have passed laws stiffening penalties for such offenses. Others include New York and California. The moves come amid a nationwide increase in organized retail theft.

The National Retail Federation reported the retail industry saw an estimated $112 billion in financial losses associated with theft in 2022. That was up from $99.3 billion the prior year.

Meanwhile, estimates from the Department of Homeland Security say organized retail crime costs federal and state governments nearly $15 billion annually in lost tax revenue. That figure does not include lost sales taxes.

New Jersey Attorney General Matthew Platkin said the new law “will give us additional ways to better protect New Jersey retailers, their employees, and their customers from victimization.”

Col. Patrick Callahan, superintendent of the New Jersey State Police, described the legislation as “a major step forward.” He said it will send “a strong message that these crimes will not be tolerated.”

‘True consumer protection’

The prime sponsors of the bill are state Sens. John Burzichelli, D-3rd District, and Holly Schepisi, R-39th District. Assemblymembers Joe Danielsen, D-17th District; Alex Sauickie, R-12th District, and Heather Simmons, D-3rd District, back companion legislation.

Burzichelli remarked, “This law will help fight the retail crime rings that operate on a much larger scale than individual shoplifters who take products for personal use. These are professional shoplifters backed by criminal organizations that plan large-scale thefts and fence the products on the gray market, often selling across state lines or through the internet.”

He added, “The health and safety of consumers are put at additional risk when these gangs resell consumable items or medical products that were stored in compromised conditions or sold with altered expiration dates. This is a true consumer protection law that will help safeguard the public’s health and save consumers money.”

Schepisi stated, “We’ve witnessed an alarming rise in large-scale theft operations across the nation, especially here in New Jersey, where stolen merchandise is swiftly sold for illicit gains. With the Governor’s signature, we can now impose tougher penalties to deter criminals and their theft organizations, and, most importantly, enhance protections for both retailers and their customers. At the heart of this issue is the safety of our communities. Retail employees shouldn’t have to fear for their safety, and shoppers deserve peace of mind that the products they buy are safe and haven’t been tampered with in any way.”

‘Necessary tools’

Stakeholders in New Jersey’s retail industry who advocated for the bill expressed gratitude to lawmakers for their efforts.

Linda Doherty, president and CEO of the New Jersey Food Council, is confident the state will “drastically reduce the amount of organized retail theft that has become an epidemic in New Jersey.”

Doherty continued, “Professional thieves will no longer see New Jersey as an ‘opportunity’ for organized retail crime enterprises. This new law signals there’s a new sheriff in town.”

New Jersey Retail Merchants Association President John Holub noted the “growing threat of violence” that has accompanied the higher frequency of thefts. He said the legislation helps address employee safety by giving the Attorney General’s Office “the necessary tools to combat” the problem.

‘A win-win-win for all’

In addition to costing businesses billions of dollars, increasing product prices for consumers and potentially putting employees in harm’s way, New Jersey Business & Industry Association President and CEO Michele Siekerka pointed out that investigations that go into prosecuting cases “are often a heavy draw on crucial enforcement resources.”

She said, “The increased penalties for these illegal operators, the added consumer protections and legal resources dedicated to prosecute and deter these crimes as part of this new law are a win-win-win for all.”

Michael Egenton, executive vice president of the New Jersey State Chamber of Commerce, called the legislation “a critical step toward protecting New Jersey businesses, employees, and consumers from the devastating impacts of organized retail crime.”

“Strengthening penalties and enforcement tools is essential to ensuring the safety of our communities and the stability of our local economy,” he said.

Other organizations also expressed their appreciation for the law, such as the Chamber of Commerce Southern New Jersey, the Statewide Hispanic Chamber of Commerce of New Jersey, the African American Chamber of Commerce of New Jersey and Punjabi Chamber of Commerce.