A SHOPPER shared his conflicted responses to receipt checks at both Costco and Walmart but he says it’s all about how he’s approached.
Receipt checking has become a staple at many retailers to curb shoplifting, which has cost the industry billions each year.
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However, many customers have expressed frustration with the practice with some saying they feel targeted by the staff.
One person said he doesn’t mind showing his receipt sometimes but it truly depends on the store.
“I don’t have a problem with showing my receipt at Costco when leaving because they check everyone,” he wrote on X, formerly known as Twitter.
Stores like Costco, BJ’s, and Sam’s Club are membership-based, meaning customers have to sign a contract before shopping there.
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One of the agreements within these contracts is that customers must show proof of purchase before leaving the store.
“It is standard practice at all our warehouse locations to verify purchase receipts when customers exit our buildings,” according to the Costco website.
“It’s our most effective method of maintaining accuracy in inventory control, and it’s also a good way to ensure that our members have been charged properly for their purchases.”
However, the shopper had a major gripe with Walmart, which doesn’t list any similar policy on its website.
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“Unlike Walmart who just randomly picks someone. I always say no thanks when Walmart asks,” they wrote.
“Do everybody or nobody.”
Some shoppers have shared scenarios of being stopped by Walmart employees while others get to walk out of the store unbothered.
“Agree. They will get dinged with profiling at some time,” read a response.
“It’s a very bad business practice when it’s only some vs all.”
‘DIDN’T KNOW’
While shoppers can say no to receipt checks at stores where membership isn’t required, retailers are protected by law to ask for them – depending on the state.
Store owners can use what is known as The Shopkeeper’s Privilege, or Merchant’s Privilege.
This means that shopkeepers and employees have the right to detain someone if they have probable cause to believe that they have stolen merchandise or were attempting to steal.
“A merchant may detain a person for a reasonable time for the purpose of conducting an investigation in a reasonable manner whenever the merchant has probable cause to believe the person to be detained is attempting to unlawfully take or has unlawfully taken merchandise from the merchant’s premises,” according to California Penal Code.
Legality of receipt checks and detention
In an effort to curtail retail crime, stores are increasingly turning to receipt checks as shoppers exit.
Legally, stores can ask to see a customer’s receipts, and membership-only stores have the right to demand such checks if shoppers agreed to terms and conditions that authorize it.
Many legal professionals have weighed in and come to similar conclusions, caveating that all states do have specific laws.
Generally speaking, stores have Shopkeeper’s Privilege laws that allow them to detain a person until authorities arrive when they have reasonable suspicion that a crime, like theft, has been committed.
Declining to provide a receipt is not a reason in itself for a store to detain a customer, they must have further reason to suspect a shopper of criminal activity.
Due to the recent nature of the receipt checks, there is little concrete law on the legality of the practice, as it takes time for law to catch up with technology.
Setliff Law, P.C. claims that “there is no definitive case law specifically relating to refusal to produce a receipt for purchases.”
For stores that improperly use their Shopkeeper’s Privilege, they could face claims of false imprisonment.
“The primary law that applies to these types of wrongful detention cases is called ‘False Imprisonment’,” explained Hudson Valley local attorney Alex Mainetti.
“Of course, you’re not literally imprisoned, but you’re detained by a person who has no lawful authority to detain you and/or wrongfully detains a customer.”
It is likely that as altercations in stores over receipt checks continue, more court cases will occur giving clearer definitions and boundaries to the legality of receipt checks.
However, the law doesn’t allow retailers to detain a shopper for simply refusing to show their receipt.
“There must be some factual basis for believing the person has stolen or is attempting to steal,” said experts at Legal Match.
“A merchant cannot use the Shopkeeper’s Privilege to stop anyone without a reasonable cause.
“This requires probable cause, not just a hunch or suspicion.”
The law differs from state to state, however, the key elements to ensure detention is legal to include probable cause, apprehension past the point of sale, and reasonable detention.
However, shopkeepers aren’t protected by the law if they’re unnecessarily forceful while detaining a suspect.
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Also, if detention lasts too long after a person is determined to be innocent, stores can be accused of false imprisonment.
The U.S. Sun has reached out to Walmart for comment.
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https://www.the-sun.com/news/11798718/walmart-receipt-check-versus-costco-customer-complaints/