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Macy's banned from detaining and fining alleged shoplifters, judge rules
Source: The Guardian
Macy's banned from detaining and fining alleged shoplifters, judge rules
Two women sued New York flagship store for ‘civil recovery’ practice
after being held in basement cells, forced to pay hefty fines and given
criminal charges
Sarah Betancourt in New York
Friday 1 July 2016 12.00 BST
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A Manhattan court judge ruled in favor of a class action lawsuit against Macy’s on Monday, in a case that looks into New York’s general business and obligations laws. The business law statute states: “A retail establishment for the purpose of investigation or questioning ... as to the ownership of any merchandise ... shall be in defense to such action that the person is detained in a reasonable manner.” The second statute gives retailers further power: “An adult shall be civilly liable to the operator of the establishment.” Penalties cannot exceed $500, and the retailer can charge five times the amount of the stolen merchandise.
The laws are meant to shield retailers. The opinion from Judge Manuel Mendez states: “Macy’s has combined the power it was given under the statutes by using this power as a double-edged sword instead of a shield.” He reasoned further that there is no language in the statures that allows Macy’s to detain an individual once an internal investigation is complete. The actions the class action alleged were seen as a violation of due process.
Faruk Usar of Usar Law Group, who represents Reyes and Moftah, said: “We’re just starting. There will be discovery to see how many people have gone through this experience. We are seeking all the money Macy’s collected to be returned.”
The court enjoined Macy’s from “demanding, requesting, collecting, receiving, or accepting any payments” that connect with the statutes from suspected shoplifters while detained in Macy’s custody.
[font size=1]-snip-[/font]
Two women sued New York flagship store for ‘civil recovery’ practice
after being held in basement cells, forced to pay hefty fines and given
criminal charges
Sarah Betancourt in New York
Friday 1 July 2016 12.00 BST
[font size=1]-snip-[/font]
A Manhattan court judge ruled in favor of a class action lawsuit against Macy’s on Monday, in a case that looks into New York’s general business and obligations laws. The business law statute states: “A retail establishment for the purpose of investigation or questioning ... as to the ownership of any merchandise ... shall be in defense to such action that the person is detained in a reasonable manner.” The second statute gives retailers further power: “An adult shall be civilly liable to the operator of the establishment.” Penalties cannot exceed $500, and the retailer can charge five times the amount of the stolen merchandise.
The laws are meant to shield retailers. The opinion from Judge Manuel Mendez states: “Macy’s has combined the power it was given under the statutes by using this power as a double-edged sword instead of a shield.” He reasoned further that there is no language in the statures that allows Macy’s to detain an individual once an internal investigation is complete. The actions the class action alleged were seen as a violation of due process.
Faruk Usar of Usar Law Group, who represents Reyes and Moftah, said: “We’re just starting. There will be discovery to see how many people have gone through this experience. We are seeking all the money Macy’s collected to be returned.”
The court enjoined Macy’s from “demanding, requesting, collecting, receiving, or accepting any payments” that connect with the statutes from suspected shoplifters while detained in Macy’s custody.
[font size=1]-snip-[/font]
Read more: https://www.theguardian.com/business/2016/jul/01/macys-shoplifting-detention-fines-lawsuit-ruling