Creates the crime of fraudulent retail sales receipts or universal product code fraud

BILL NUMBER:S6955A

Title of bill

An act to amend the general business law and the penal law, in relation to creating a crime of retail sales receipt fraud or universal product code fraud

Purpose or general idea of bill

This bill prohibits retail sales receipt fraud and universal product code fraud and provides for criminal penalties for such crimes.

Summary of provisions

Section One amends the general business law by adding, new sections 393-e, 393-f and 393-g which define and prohibit retail sales receipt fraud or universal product code fraud in the second degree, retail sales receipt fraud or universal product code fraud in the first degree, and possession of fraudulent retail sales receipt or universal product code manufacturing devices respectively.

Section Two makes corresponding amendments to the penal law by adding new sections 165.80, 165.81, and 165.82. Retail sales receipt fraud or universal product code fraud in the second degree is classified as a class A misdemeanor. Retail sales receipt fraud or universal product code fraud in the first degree is classified as a class E felony. Possession of fraudulent retail sales receipt or universal product code manufacturing devices is also classified as a class E felony.

Section Three is the effective date.

Justification

According to the Federal Bureau of Investigation, organized retail theft is an industry that costs United States retailers about $30 billion per year. Organized retail crime comprises a wide spectrum of high-volume and highly organized theft rings that cost New York retailers hundreds of millions of dollars annually and, more importantly, compromise the health, safety, and wallet of unsuspecting New York consumers. And for every item stolen, New York's state and local governments lose out on sales tax revenue - again, adding up to millions annually. Organized retail theft is the most serious security issue facing many retail merchants, including apparel and accessory retailers, mass merchandisers, do-it-yourself stores, drug stores, and supermarkets. It's a crime that has grown substantially over the past decade, with the emergence of organized criminal theft at an unprecedented level. Retailers are forced to offset these significant costs through higher prices - meaning that honest consumers are forced to endure the impact of organized retail theft and professional shoplifters.

Organized retail crime groups have employed numerous tactics to defraud retailers and obtain merchandise. Receipt fraud and Uniform Product Code (UPC) fraud are some of the emerging tactic used by these criminals. In receipt fraud, thieves steal merchandise, create counterfeit receipts, and collect money off of their fraudulent returns. In UPC fraud, thieves transfer, make, or alter counterfeit UPC labels and then purchase items at below cost. By amending the

general business law and the penal law to criminalize this type of scheme, organized retail crime can be further deterred.

Legislative history

New bill.

Fiscal implications

None.

Effective date

This act shall take effect on the first of November next succeeding the date on which it shall have become a law.