March 3

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New Civil Recovery Legislation Benefits Retailers

March 3, 2005

Norfolk, VA - Changes made to a section of the civil recovery law during the 2005 Virginia General Assembly session gives retailers a new tool for recovery of stolen property through the civil justice system.

Retail Alliance advocated for this legislation, after a local retailer brought a loophole in the law to the organization’s attention. The retailer had filed charges against an employee who was giving friends and family the company’s employee discount on their purchases, an act of employee theft. However, because of the loophole – ambiguity in the definition of employee theft – the judge dismissed the charges.

“This was one of the most advantageous bills for retailers that passed in this session,” said Margaret Ballard. Retail Alliance’s vice president of advocacy, who successfully worked with two legislators to introduce bills addressing the problem. Ballard also worked closely with the Retail Alliance Loss Prevention Task Force and the Security Managers Association of the Retail Merchants Association of Greater Richmond to garner grassroots and lobbying support.

In the Senate, Ken Stolle of Virginia Beach carried SB1209, and in the House of Delegates, Bill Janis of the 56th District (Louisa, Goochland and parts of Henrico County) was the patron of HB1616. The legislation, which passed unanimously, makes several changes:

• Enables merchants to recover a civil judgment up to two times the unpaid retail value of stolen merchandise. (Unpaid retail value allows for the problem of employees stealing with an employee discount). Previously, the law stated that merchants could only recover the actual, or wholesale, cost of goods.
• Enables merchants to seek recovery for both shoplifting and employee theft.
• Clarifies the definition of shoplifting and employee theft to include property stolen for the perpetrator’s or someone else’s use.

“This legislation helps retailers’ bottom-line by giving them another avenue to pursue in recovering stolen merchandise,” said Delegate Janis. “One of the goals of the civil justice system is to provide incentives for people to stop wrong behavior. This bill hits shoplifters in their wallets and gives retailers some relief.”

Janis noted that both the House and Senate versions of the bill passed without a single “no” vote. “That reflects the common sense and necessity of this legislation,” he said. Governor Warner is expected to sign the bill into law, and it would become effective July 1.

Founded in Norfolk in 1903, Retail Alliance is a retail association and a sales agent for Equifax, providing businesses credit-related products and reporting. Retail Alliance serves its association partners with benefits that include retail lobbying, professional development, training, and discounted group buying. Over 2,000 Virginia and North Carolina businesses are partners or customers of Retail Alliance.

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