Establishes crimes relating to false receipts and universal product code labels

BILL NUMBER:S4777

Title of bill

An act to amend the penal law, in relation to establishing crimes relating to false receipts and universal product code labels

Purpose

This bill establishes the crime of Retail sales receipt or universal product code fraud in the first and second degrees as well as Possession of a fraudulent retail sales receipt or universal product code manufacturing device

Summary of provisions

Section 1 adds four new sections to the penal law:

-165.80 provides definitions of "retail sales receipt" and "uniform product code label"

-165.81 creates the crime of Retail sales receipt of universal product code fraud in the second degree

-165.82 creates the crime of Retail sales receipt of universal product code fraud in the first degree

Section 2 provides the effective date

Existing law

None.

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 tactics 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 Penal Law to criminalize this type of scheme, organized retail crime can be further deterred.

Legislative history

2012: Passed the Senate (S.7370/A 10554) 2013: Passed the Senate (S.6289/A.1508) 2014: Passed the Senate (S.779/A.1508)

Fiscal implications

None to the state.

Effective date

November 1 succeeding the date on which it shall have become a law.