A LAWYER has warned that both buyers and retailers should be aware of the implications of receipt checks.
Walmart enacted the policy at its doors and many shoppers resisted, creating a difficult situation for both parties.
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Walmart has been checking receipts for years, but the retailer has become stricter with the policy since it increasingly relied on self-checkout.
The company lost about $3 billion to theft in 2021, $6.1 billion in 2022, and $6.5 billion in 2023, and up to half of that is from self-checkout theft, for Investor’s Place.
Many buyers encounter problems with the security measure, flatly refusing checks or calling it a violation of rights.
OPINION OF AN ‘EXPERT
Daniel Tsai, Canadian lawyer and founder of Consumer rightsa website that offers free information about legal rights, spoke to The US Sun about receipt checks.
He noted that both consumers and retailers like Walmart should be cautious when it comes to receipt checks.
They could have legal ramifications for both parties if a misstep occurs.
If Walmart suspects a customer of stealing, an employee may approach the customer to ask for the receipt or items in their possession.
If theft is suspected, Walmart may detain the buyer and involve authorities.
“Depending on the state and jurisdiction, when a store detains a customer suspected of shoplifting, they are effectively engaging in a citizen’s arrest, using the powers of a law enforcement officer to detain the suspect,” Tsai said.
A citizen’s arrest allows a private individual to detain someone they believe has committed a crime.
In general, certain conditions must be met for a citizen’s detention to be legal:
- Witnessing a Crime: The individual making the arrest must have personally witnessed the crime committed or have reasonable grounds to believe that a crime has occurred.
- Severity of the Offense: The crime must generally be serious enough to warrant arrest.
- Immediate action: A citizen’s arrest is only permitted in most cases if it is necessary to act immediately to prevent the suspect from escaping or causing further harm.
- Minimum Strength: The person making the arrest must use only reasonable force necessary to detain the suspect until the police arrive.
- Contacting law enforcement: After making a citizen’s arrest, the person detaining the suspect is typically required to contact authorities as quickly as possible.
The specifics of a citizen’s arrest can vary significantly depending on the jurisdiction and laws of the specific state or country.
Tsai added that there are legal ramifications if a store illegally carries out a citizen’s arrest.
“If the customer had done nothing wrong, the store would then be engaged in illegally confining the innocent customer, resulting in a type of false imprisonment,” said the lawyer.
Because of this, retailers like Walmart must tread carefully when it comes to receipt checks.
“Stores need to be extremely cautious and attentive to the civil rights of their customers and must have evidence, such as video camera footage or eyewitnesses such as security guards and employees, to show that they can prove that a crime of theft was in fact committed by the customer,” said Tsai.
ADVICE FOR BUYERS
Tsai offered several tips for buyers to consider if they feel their rights have been violated during the receipt verification process.
He suggested that customers ask Walmart to explain why they are being detained and ask questions like: “What evidence do you have?” and “How long does Walmart intend to hold me?”
Legality of receipt and detention checks
In an effort to reduce retail crime, stores are increasingly turning to checking receipts as customers leave.
Legally, stores can ask to see a customer’s receipts, and members-only stores have the right to demand such checks if customers agree to the terms and conditions authorizing them.
Many legal professionals have evaluated and reached similar conclusions, warning that all states have specific laws.
Generally speaking, stores have Retailer Privilege laws that allow them to detain a person until authorities arrive when there is reasonable suspicion that a crime, such as robbery, has been committed.
Refusal to provide a receipt is not a reason in itself for a store to detain a customer; she must have additional reasons to suspect a client of criminal activity.
Due to the recent nature of receipt checks, there is little concrete legislation regarding the legality of the practice, as it takes time for the law to catch up with technology.
Setliff Law, PC states that “there is no definitive case law specifically relating to the refusal to present a receipt for purchases.”
For stores that misuse the Retailer Privilege, they may face charges of false imprisonment.
“The primary law that applies to these types of wrongful arrest cases is called ‘False Imprisonment,’” the local Hudson Valley attorney explained. Alex Mainetti.
“Of course, you are not literally arrested, but you are detained by a person who does not have the legal authority to detain you and/or wrongfully detains a client.”
It is likely that as store altercations over receipt checks continue, more lawsuits will occur giving clearer definitions and limits to the legality of receipt checks.
The lawyer advised customers to ask to be excused or allowed to leave the store if employees do not provide evidence upon request.
Tsai also suggested that Walmart customers document the incident.
“It would be wise for the customer to record the interaction and document the answers to these questions and the request to leave,” he said.
In other Walmart news, a retail expert shared why the company is the “world’s most dominant retailer” and how it’s poised to beat rivals with new changes.
Additionally, five new changes at Walmart stores face backlash despite executives’ promises.
This story originally appeared on The-sun.com read the full story
