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California enacts laws to combat organized retail crime

Governor Gavin Newsom of California has signed into law a package of 10 bills aimed at combating retail crime in the state. The bipartisan legislation targets various forms of theft, including shoplifting, theft from vehicles, organized theft, and the resale of stolen goods on online marketplaces. Retailers have been advocating for stronger measures to address the growing challenge of retail theft, which has impacted their profits, customer experience, and staff retention.

One of the key bills in the package, SB 1416, imposes tougher penalties on middlemen involved in organized retail crime rings. This bill was introduced in response to a CNBC investigation that exposed the activities of individuals like Michelle Mack, who made millions by reselling stolen goods on platforms like Amazon. The new law increases prison time and fines for those engaged in the sale, exchange, or return of stolen property, aiming to deter organized retail crime.

The legislation comes at a time when commercial burglary and robbery rates in California have been on the rise, according to data from the Public Policy Institute of California. The California Highway Patrol's Organized Retail Crime Task Force has made numerous arrests and recovered millions of dollars worth of stolen items since the beginning of the year.

In addition to addressing retail crime at the state level, retailers have been lobbying Congress to pass national measures to combat organized retail crime. The National Retail Federation has been pushing for federal legislation to make it easier to prosecute theft as a federal felony.

While Democrats are seeking to appear tough on crime ahead of the 2024 presidential election, concerns have been raised about the potential impact of the new laws on marginalized groups. Critics fear that the measures may disproportionately harm vulnerable populations. Another bill in the package, SB 1144, targets the trafficking of stolen goods on online marketplaces like Amazon, updating compliance criteria for sellers and facilitating civil charges against platforms selling stolen goods.

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