To tackle the growing issue of retail theft, Governor Gavin Newsom of California enacted 10 laws this past Friday. The legislation takes aim at various forms of retail crimes such as shoplifting, automotive theft, organized pilfering, and selling of stolen goods. This legislative response came in the wake of a statewide crime spree led by an individual named Michelle Mack, known as the ‘Queenpin.’ The ‘California Girls’ theft ring, alleged masterminded by Mack, stole millions from Ulta, a popular cosmetics chain. However, some critics argue these measures may be insufficient and have arrived later than they should have.
Thieves who pilfer goods valued at over $950 faced felony charges under previous California laws, a stance seen by some as being too lenient. In response to a rise in retail crime, storeowners have urged both local and federal governments to act. Public Policy Institute of California data paints a similarly worrying picture, with rates of commercial burglary and robberies trending upward in recent years. From 2021 onward, shoplifting incidents have displayed a concerning stability.
An initiative from the California Highway Patrol, a task force dedicated to retail crime, had, by the start of this year, made close to 900 arrests. Their efforts have resulted in the recovery of a substantial number of stolen goods, estimated at over $7.2 million in value, according to the Governor’s press statement.
One of the enacted bills, SB1416, imposes stricter sentences on key players within organized crime rings. This is considered a direct response to the ‘California Girls’ operation. State Senator Josh Newman is behind this particular bill, which amends the sentencing guidelines for those involved in organized crime. Critics have been vocally opposed to the previous maximum sentence of three years for these types of offenses, stating it does not serve as a substantial enough deterrent.
The revised legislation lengthens sentences based on the monetary value of the stolen items. For example, individuals who sell, exchange, or return stolen items valued above $50,000 would face an added year in their prison term. This comes amidst a noticeable uptick in retail crime scenarios such as ‘smash-and-grab’ throughout California.
Increased sentencing escalates even further for more severe crimes. If a person resells goods valued above $3 million, their sentence would include an additional four years. The modification of this law pertains directly to the infamous Ulta ‘queenpin’ who was discovered to have stolen roughly $8 million in product with the assistance of her spouse in a crime spree dating back nearly a decade.
A vast array of stolen merchandise exceeding $300,000 in value was retrieved from the couple’s high-end mansion near San Diego, valued at around $2.75 million, as per the prosecution’s statements. The ‘Queenpin’ Mack, a 53-year-old mother to three young daughters, was taken into custody along with her spouse in December. Her husband has already commenced the sentence of five years and four months, and Mack too will serve a similar sentence, albeit at a later date.
Alongside the jail sentence, the couple has been mandated to pay restitution amounting to $3 million to Ulta and roughly $13,000 to Sephora, as reported by CNBC. Furthermore, a minimum of nine others involved in this expansive scheme were charged. It has been reported that the pair targeted numerous stores in California and also expanded their operations to ten other states.
Another bill, SB1144, has aims similar to Mack’s case. Its purpose is to simplify the process of filing civil charges against online platforms that are used to sell stolen goods. According to the information, Mack made her fortune mainly by selling the stolen items from Ulta and Sephora on her Amazon storefront. The goods ranged from sunglasses and designer bags to beauty products.
Working from their own residence, the couple prepared the goods for shipping from their garage. In the year 2022 alone, their online reselling stunt earned them an astonishing $1.89 million, as indicated by Amazon sales records submitted to CNBC.
Earlier this year, Dave Kimbell, CEO of Ulta Beauty, expressed his concerns to CNBC, stating that the financial ramifications of organized retail theft are significant. The new laws, according to Governor Newsom, offer a more effective approach, providing law enforcement agencies with substantial tools to arrest culprits and hold them accountable.
Nevertheless, doubts prevail as to whether these new laws will be potent enough to reverse the already inflicted damage. Data from the Public Policy Institute of California indicates retail theft in California surged 29% in 2022, compared to 2019. Similarly, commercial burglary incidents jumped by 16%, and instances of robbery increased by 13% over the same period.
Especially worrisome are the figures from the Bay Area which show the highest reported retail crime rates. In addition, the biggest crime rate increases since 2019 were also reported from this area, according to the data. As California grapples with this onslaught of retail crime, these new laws aim to deal a blow to the operations of organized theft rings and bring perpetrators to justice.