Businesses, employees and shoppers will be better protected from “smash-and-grab” organized criminal theft rings under a new NJBIA-supported law signed Tuesday that imposes extended prison terms on repeat offenders and requires the attorney general to take actions to combat retail theft. 

Gov. Phil Murphy signed the legislation, A-4755/S-3587, during an event in North Brunswick with business leaders, law enforcement officials and legislators. The measure, which also cracks down on gift card fraud, brings New Jersey’s criminal penalties in line with surrounding states, including New York and Pennsylvania, which already have similar laws.  

“Increasingly, these smash-and-grab robberies have become a national problem,” Murphy said at the event. “With this legislation I am signing into law this morning we are going to protect the safety and financial well-being of our state’s business owners, retail workers and shoppers and introduce reforms to help deter organized retail theft in the years to come.” 

The bill had strong support from business groups, including the NJBIA, the New Jersey Retail Merchants Association, the New Jersey Food Council and many state, regional and local chambers of commerce. These include the New Jersey State Chamber of Commerce, the Statewide Hispanic Chamber of Commerce, the African American Chamber of Commerce, the Chamber of Commerce of Southern New Jersey, the Punjabi Chamber of Commerce, and more. 

“NJBIA thanks Governor Murphy for signing this important legislation into law, as well as the strong bipartisan sponsorship and support it received in the Legislature before reaching his desk,” said Michele Siekerka, President & CEO of NJBIA.  

“Organized retail crime is a serious issue that collectively costs businesses billions of dollars, increases product prices for consumers and sometimes even puts employees’ safety at risk. Further, the investigations that go into prosecuting these cases are often a heavy draw on crucial enforcement resources. The increased penalties for these illegal operators, the added consumer protections and legal resources dedicated to prosecuting and deter these crimes as part of this new law are a win-win-win for all.”  

The legislation, whose prime sponsors were Senator John Burzichelli (D-3) and Assemblyman Joe Danielsen (D-17), won unanimous approval in the Legislature. The law will impose stricter penalties for retail theft crimes and establish a dedicated effort to combat organized retail theft. Specifically, the law:  

• Upgrades any simple assault to an aggravated assault when committed against a retail employee engaged in the performance of their duties 
• Upgrades to a second-degree crime the failure to pay a tax, fee, penalty, or interest due if accrued through conduct as a leader of an organized retail theft enterprise 
• Establishes fostering the sale of stolen property as a disorderly person’s offense 
• Provides that the value of merchandise involved in a shoplifting offense may be used to upgrade the offense 
• Provides that a person may be sentenced to an extended prison term for repeat convictions related to retail theft 
• Requires merchants that sell gift cards to ensure that the gift cards are enclosed in secure packaging and that they display a consumer notice related to gift card fraud provided by the Division of Consumer Affairs 
• Requires the Attorney General to undertake steps as deemed appropriate to effectively investigate, prosecute, and deter organized retail theft, which may include establishing a retail theft unit, task force, or other office or initiative 

“New Jerseyans who own these businesses are not the only ones who are paying the price for organized retail theft because when a burglar robs a store and runs off with thousands of dollars’ worth of goods, the entrepreneur who owns the business is often forced to make up for their loss by raising prices on law-abiding customers,” Murphy said.

Burzichelli, the Senate sponsor of the legislation, noted that retail crime rings operate on a much larger scale than individual shoplifters. 

“These are professional shoplifters backed by criminal organizations that plan large-scale thefts and fence the products on the gray market, often selling across state lines or through the internet. It’s grown into a billion-dollar criminal enterprise that costs the average family an estimated $500 a year,” Burzichelli said. 

John Holub, president, New Jersey Retail Merchants Association, noted that in recent years, retailers across New Jersey have been targeted by professional, highly organized criminal enterprises. “And while retailers are experiencing a higher frequency of thefts overall, even more troubling has been the growing threat of violence,” Holub said. “This legislation not only addresses gift card fraud and prolific shoplifters, but also the safety of our employees.” 

Organized retail theft has also been a growing problem at supermarkets. 

“New Jersey is taking a defiant stance and recognizing that organized retail crime is not just petty shoplifting from the neighborhood grocer,” said Linda Doherty, President & CEO, New Jersey Food Council. “We are fighting a behemoth operation of professional thieves that are methodically moving from one town to another in New Jersey, and across state lines, stealing merchandise off shelves and reselling them in the gray marketplace. 

“With the Governor’s signature, professional thieves will no longer see New Jersey as an ‘opportunity’ for organized retail crime enterprises,” Doherty said. “This new law signals there’s a new sheriff in town.” 

Christina Renna, president and CEO, Chamber of Commerce Southern New Jersey, said retail theft has had a significant impact on the business community. 

“This legislation strengthens protections for both retailers and consumers, and the Chamber of Commerce Southern New Jersey applauds these proactive measures to create a more safe and thriving economic environment,” Renna said.