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Retailers Bully Shoplifters for $$

'Civil recovery' systems using threat of legal action to extort funds

By Nick McMaster,  Newser Staff

Posted Feb 20, 2008 2:00 PM CST

(Newser) – A system designed to compensate retailers for losses incurred by shoplifters has few controls to prevent the extortion or harassment, the Wall Street Journal reports. “Civil recovery” laws allow retailers to turn the names of suspected shoplifters over to collection agencies who demand fees of $200 or much more—even if merchandise was immediately returned to store shelves.

The laws require stores to demand penalties before suing, but most retailers file the demand for restitution, often with added “pre-litigation” fees, without ever planning to sue. Critics call using fear of a lawsuit a “shakedown,” but an industry spokesman defended the system: "We're just trying to get some money from criminals so our honest customers don't have to pay.”

Ashley Tarbox pushes her shopping cart with her three children in tow at a Wal-Mart in San Diego, Thursday Feb. 7, 2008. (AP Photo/Lenny Ignelzi)
Ashley Tarbox pushes her shopping cart with her three children in tow at a Wal-Mart in San Diego, Thursday Feb. 7, 2008. (AP Photo/Lenny Ignelzi)   (Associated Press)
A Home Depot store is shown in Albany, N.Y., Monday, Nov. 5, 2007. (AP Photo/Mike Groll)
A Home Depot store is shown in Albany, N.Y., Monday, Nov. 5, 2007. (AP Photo/Mike Groll)   (Associated Press)
Retailers are cracking down, demanding civil settlements against even suspected shoplifters under threat of a lawsuit.
Retailers are cracking down, demanding civil settlements against even suspected shoplifters under threat of a lawsuit.   (Shutter Stock)
A customer leaves the Home Depot design center store in Charlotte, N.C., Tuesday, Nov. 13, 2007. Home Depot is among the retail giants now aggressively pursuing shoplifters to an unprecedented degree. (AP Photo/Chuck Burton)
A customer leaves the Home Depot design center store in Charlotte, N.C., Tuesday, Nov. 13, 2007. Home Depot is among the retail giants now aggressively pursuing shoplifters to an unprecedented degree....   (Associated Press)
The outside of a Wal-Mart store in Little Rock, Ark. is seen in this Dec. 26, 2007 file photo. Palmer Reifler & Associates is one legal firm aggressively pursuing suspected shoplifters for large retailers. (AP Photo/Mike Wintroath)
The outside of a Wal-Mart store in Little Rock, Ark. is seen in this Dec. 26, 2007 file photo. Palmer Reifler & Associates is one legal firm aggressively pursuing suspected shoplifters for large retailers....   (Associated Press)
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