Retailers counting the cost of retail crime

The latest British Retail Consortium crime figures show the cost of retail crime in 2005 increased by £10million.

However, Eversheds law firm is warning that the cost to retailers does not stop there. Retailers who confront a shoplifter (and quite understandably, they will) could leave themselves open to claims for slander, personal injury, assault and battery, and false imprisonment.

The British Retail Consortium Retail Crime Survey revealed that losses through crime cost the industry £1.43 billion in 2005. Including the money spent on crime prevention, the cost of crime in one year totals £2.10 billion. The findings highlighted incidents such as intimidation, abuse and assault against retailers as a major problem in the sector. However, staff that approach a person they suspect of shoplifting could leave themselves vulnerable to claims by the accused against their employer. Michael Clavell-Bate, litigation partner at Eversheds, comments:

“Today’s retailer is facing more legal claims from the public than ever before. We are now in an increasingly litigious society and unfortunately this means retailers could face criminal charges against them for actions against suspected or actual shoplifters or for antisocial behaviour. Media hype of personal injury claims has increased the public’s awareness of their “rights” and with it the likelihood of claims against a company.

“Retailers need to be extra careful with how staff manage a potential situation. Accusing a member of public with shoplifting can result in a claim against the company for slander; an attempt to restrain a suspected shoplifter may end in a personal injury or assault and battery claim, which includes verbal abuse; and allegations can also be made for false imprisonment if a suspected shoplifter is wrongly detained.” “Providing training for staff on how to correctly deal with potential situations is the best way of ensuring everybody understands what they can and cannot do. “Companies need to ensure that policies for dealing with shoplifters are regularly reviewed and all staff are given clear guidelines on how to deal with suspected shoplifters. Damage caused by members of staff will ultimately be the responsibility of the retailer; such is the manner of vicarious liability.

“If a claim is brought against your company it is vital that a decision is made immediately as to whether the allegation is genuine. Genuine claimants may be happy to accept a sincere and prompt apology or gesture rather than a costly and timely legal battle. “Ensuring that staff act in a correct and controlled manor can be difficult for companies to regulate, but by following simple guidelines and regularly revisiting them, retailers should be able to reduce the likelihood of receiving claims against them.”