The California legislature has passed a bill with bipartisan approval, aimed at curbing organised retail theft in the US state.
Known as SB 1144, the legislation is part of the Safer California Plan and seeks to strengthen the state’s laws against the sale of stolen goods on online marketplaces.
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SB 1144 received unanimous support in both the state Senate and Assembly, with votes of 37-0 and 73-0 respectively.
The bill is now awaiting Governor Gavin Newsom’s signature to become law and will take effect on 1 July 2025.
A broad coalition of retailers, law enforcement agencies and local governments has endorsed the legislation.
California Retailers Association president and CEO Rachel Michelin said: “Organised 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.
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By GlobalData“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.”
The bill builds upon Senator Nancy Skinner’s previous legislation, SB 301, which was the state’s initial attempt to regulate the online sale of stolen goods.
SB 1144 extends these regulations to high-volume sellers who bypass online marketplace transactions, a method increasingly used by organised theft rings to evade detection.
The new bill applies to sellers with more than 200 transactions a year, involving new or unused goods worth at least $5,000.
Under SB 1144, online marketplaces are required to suspend or terminate accounts of high-volume sellers suspected of selling stolen goods and report these suspicions to law enforcement.
The legislation also authorises local prosecutors to bring civil charges against both marketplaces and individuals for trafficking stolen goods online.
Senator Skinner said: “Online marketplaces are a valuable tool to buy and sell legitimate goods and services, but increasingly they’re also used by organised retail theft rings to unload stolen goods.
“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 organised retail theft rings. Those days are over.”
