Relates to mercantile establishments and the defense of lawful detention

Title of bill

An act to amend the general business law, in relation to mercantile establishments and the defense of lawful detention

Purpose or general idea of bill

To impose a reasonable limit on the mercantile establishments' ability to detain persons who have alleged committed larceny, and reduce the period of time said persons can be detained to no more than one hour. Also, to put restrictions on mercantile establishments ability to coerce those who have alleged committed larceny from entering into any sort of pay agreement, whether directly or by credit, for the civil damaged incurred by the alleged offense. Additionally, restricting the coercion of persons, the alleged shoplifter or their parents and legal guardians, into signing agreements which say "(The mercantile establishment) didn't coerce you in any way into signing anything, you signed voluntarily" if during the detention the person made an oral statement or signed any statement or documents.

Summary of specific provisions

Section 1 Amends subdivision 1 of section 218 of the General Business Law to impose a reasonable limit on the mercantile establishments' ability to detain persons who have alleged committed larceny, restrict the ability to coerce the signing of a confession or payment agreement for the civil damages, and restrict mercantile establishments' ability to coerce the signing of documents which absolve the establishment of responsibility for said coercion.

Section 2. Effective Date

Existing law

Under Subdivision 1 of section 218, current law states retail mercantile establishments may detain person who have allegedly committed larceny for the purpose of investigation or questioning in regards to criminal possession of items. This authority is given to authorized employees such as owner, employee, or agent who have reason to believe that said person who is detained was guilty of criminal possession of the item.

Justification

There have been instances where mercantile stores have knowingly abused the vague language in the law regarding their management of persons who have allegedly committed larceny. It is possible, because of how loosely the law can be interpreted, for mercantile stores to detain such persons for hours or until they have agreed to sign an admission of guilt. These admissions of guilt subject, the individuals to responsibility for the damages incurred. The mercantile establishments have then coerced individuals to either pay the civil penalties directly or open credit card accounts with the establishment. Additionally, after the detained person agrees to pay the civil penalties to the mercantile establishments, they can be coerced into signing a statement which then absolves the establishment of any wrong doing during the detention process. These statements can be as such: "the mercantile establishment didn't coerce you in any way into signing anything you signed voluntary." Such practices can lead to an abuse of power, and a predatory business practice, whereby mercantile stores profit from persons who have allegedly committed larceny. This legislation will strengthen the guidelines for these practices, and stop the practice of coercion during these detention periods.

Prior legislative history

2015: New Bill/A.5581-Referred to Economic Development 2014: Referred to Economic Development

Fiscal implications

None to the state.

Effective date

This act shall take effect immediately.