Special to the Vanguard
Sacramento, CA – SB 1144, legislation that would combat organized retail theft, passed the state Legislature Monday with bipartisan support.
SB 1144, which is part of the Legislature’s Safer California Plan, would strengthen California law regulating online marketplaces by ensuring that platforms are not facilitating the sale of stolen goods and incentivizing organized retail theft.
“Online marketplaces are a valuable tool to buy and sell legitimate goods and services, but increasingly they’re also used by organized retail theft rings to unload stolen goods,” said Sen. Skinner, D-Berkeley. “With the overwhelming passage of SB 1144, the California Legislature has sent a clear message: Online marketplaces can no longer be used as giant fencing operations by organized retail theft rings. Those days are over.”
SB 1144 won overwhelming bipartisan approval today from the state Senate on a vote of 37-0, after it received strong bipartisan support last Thursday in the state Assembly, on a 73-0 vote. If signed by Gov. Gavin Newsom, the bill takes effect July 1, 2025. SB 1144 is supported by a large coalition of retailers, law enforcement, and cities and counties.
“Organized retail crime is a complex, multi-faceted problem and combatting it requires a comprehensive approach. SB 1144 builds upon the work of good actors among online marketplaces by enhancing accountability and transparency,” said Rachel Michelin, president/CEO of the California Retailers Association. “This legislation brings critical updates to the criteria for high-volume third-party sellers and improves the measures required for online marketplaces to prevent the trafficking of stolen goods. The California Retailers Association is proud to support SB 1144, and we thank Senator Skinner for her dedicated collaboration with us to ensure the legislation is fair and effective.”
Prosecutors Alliance Action (PAA) Executive Director Cristine Soto DeBerry supported the passage of the legislation.
“For years, it has been too easy for individuals to sell stolen goods online with no repercussions. That stops today with the passing of SB 1144,” DeBerry said.” With just a few new regulations on online marketplaces, law enforcement will now have the information needed to find and hold accountable individuals who steal from businesses in our communities and exploit these sites for personal gain.
“And customers will now have the peace of mind that they are purchasing items from legitimate sellers, not inadvertently buying stolen goods.”
DeBerry pointed out, “Just eight percent of individuals who commit theft in California are caught, so we need smart preventative solutions like SB 1144 that remove the incentive and opportunity to profit from stolen goods online.”
SB 1144 builds on Sen. Skinner’s 2022 law, SB 301, landmark legislation that established the state’s first-ever regulations governing the sale of stolen goods on online marketplaces. According to many brick-and-mortar retailers, the rapid growth of online marketplaces has spurred organized retail theft. According to some estimates, $500 billion worth of stolen or counterfeit products change hands via online marketplaces each year.
Increasingly, organized retail theft operations are run by ringleaders who hire and pay “workers” to rob specific items from popular brick-and-mortars stores. The stolen goods are then collected from those workers, and the ringleaders make millions selling the ill-gotten goods online.
Earlier this year, a wealthy Southern California couple became the poster child for organized retail theft. The pair paid people to steal popular beauty products from specific retailers. According to the California Department of Justice, the couple then pocketed more than $8 million selling the stolen products online.
In 2022, Sen. Skinner’s SB 301 launched California’s effort to combat the sale of stolen goods online by providing higher standards of accountability and verification and by helping marketplaces identify and take action against organized retail theft rings.
SB 1144 strengthens SB 301 by also requiring online marketplaces to regulate high-volume sellers that advertise goods online but complete their sales transaction offline rather than through the marketplace. According to retailers, organized retail theft rings increasingly do not complete their sales using the online marketplace transaction function, thus allowing the seller to avoid the regulations created under SB 301.
SB 1144 applies to high-volume sellers that complete 200 or more transactions a year involving new or unused goods, valued at least $5,000, and builds on SB 301 by:
- Clarifying that high-volume sellers must comply with the requirements in SB 301, regardless of whether the payment is processed on the online marketplace;
- Requiring online marketplaces to suspend or terminate, and flag to law enforcement, high-volume sellers they reasonably believe are selling stolen goods;
- Allowing local district attorneys, city attorneys, and county counsels to file civil charges against an online marketplace or an individual for selling stolen goods on the online marketplace;
- Improving transparency and strengthening consumer confidence by having online marketplaces inform consumers that high-volume sellers have been verified and certified on their platforms.
Senator Aisha Wahab’s Retail Theft Bill Sent to Governor’s Desk
Sacramento, CA —State Senator Dr. Aisha Wahab’s (D-Silicon Valley) SB 982, Organized Theft Sunset Removal, passed the legislature and ensures organized theft becomes a permanent crime.
“Small businesses are relying on us to ensure prosecutors and law enforcement have effective tools to combat organized theft,” said Senator Wahab. “This law increases the safety of all Californians.”
SB 982 is part of the Senate’s Safer California package and Governor Newsom’s Retail Theft package, and passed the legislature with bipartisan support.
Senate Bill 1356, Gender Perspective Judging, also passed the legislature and expands the scope of existing judicial training programs to more broadly cover gender bias.
SB 982 and SB 1356 will now head to the Governor’s Desk.
