An anti-shoplifting program developed by Corrective Education Company (“CEC”) and implemented by Walmart at 36 Indiana locations created legal issues and questions that warranted a review by the Indiana Attorney General Curtis Hill. Upon receiving notification of the Attorney General’s concerns, Walmart voluntarily agreed to discontinue the program.
Hill
Under the now discontinued program, a person suspected of shoplifting was detained by a Walmart agent or employee and escorted in temporary custody to the loss-prevention area of the store. A person trained in the program then obtained personal identification information from the suspect and ran the data to determine if he or she was a “first-time offender” at a Walmart location. In order to qualify for the program, the suspect had to be a first-time offender and between the ages of 18 and 65 years old.
If eligible, the suspect watched a four-minute CEC video and is offered a choice: (1) enter into a contract with CEC to pay $400 and complete an “education course” via a six-hour online program; or (2) decline the program and subject himself to immediate referral to law enforcement, meaning arrest. The contract also generally required the suspect to sign a written confession.
The Attorney General’s Office began its review of the CEC program following a request for a legal opinion by Tippecanoe County Prosecuting Attorney Pat Harrington. Harrington reported his concerns that the CEC agreements employed by Walmart in Tippecanoe County were “private” agreements to relinquish law enforcement action, which Harrington believed to be inappropriate and contrary to law.
The Attorney General’s review, which included the cooperation of CEC and Walmart officials, determined that the retailer was offering to forgo contacting the police in exchange for suspects agreeing to enter into their program. Indiana law is clear on the manner and authority in which retailers may lawfully detain shoplifting suspects and law enforcement’s role in that process.
According to Hill, Walmart stated that it adopted this program offered by CEC because it believed that the program was a more effective way to cope with what Walmart sees as a “growing problem” of shoplifting. Walmart also cites what it perceives as the hostility of the justice system to the high volume of cases brought by its stores. The lack of support has become so apparent that ordinances have been passed in cities such as Kokomo and Beech Grove, where entities like Walmart can be declared “public nuisances,” and assessed monetary fines for calling the police too often.
Hill noted as of Nov. 20, 2017, that the would-be public “nuisance” known as Walmart is the single largest private-sector employer in the State of Indiana.