Retail Fraud vs Shoplifting: Key Differences, Severity Levels, and Their Impact on Your Future

Understanding Retail Fraud Under Michigan Law

Michigan law does not officially use the term “shoplifting.” Instead, it classifies such acts as “Retail Fraud,” covered under Michigan Compiled Laws (MCL) 750.356c and MCL 750.356d. These statutes make it a crime to commit fraud while in a store that offers goods for sale to the public. Retail fraud is defined as stealing, switching price tags, or otherwise misrepresenting the value of an item to avoid paying the full price.

To convict someone of retail fraud, the prosecutor must prove each element of the offense beyond a reasonable doubt. Those elements typically include:

• Intent: The prosecution must prove that the accused intended to defraud the store.
• Taking or altering merchandise: This can include physically taking items, switching price tags, or returning stolen goods for store credit or cash.
• Ownership: The store must be open to the public and lawfully in possession of the property at issue.

Retail fraud can occur even if the merchandise never actually leaves the store; all that’s required is the intent to steal or avoid payment with a fraudulent act.

What Is Shoplifting?

While “shoplifting” isn’t an official legal term in Michigan, it refers to the act of taking goods from a retail establishment without paying for them. Shoplifting is the behavior that leads to being charged with retail fraud. In other words, “shoplifting” describes the act, while “retail fraud” is the legal charge filed in court.

Many people are shocked to learn they can be charged with retail fraud for actions that may seem minor or even accidental—like forgetting to scan an item at a self-checkout, switching a price tag, or walking out while distracted. Prosecutors don’t have to prove a person got away with stolen goods, only that there was an intentional act to avoid paying the full purchase price.

The Three Degrees of Retail Fraud in Michigan

The severity of retail fraud charges depends primarily on the value of the merchandise and the person’s prior record. Michigan law divides retail fraud into three degrees:

Retail Fraud in the First Degree – MCL 750.356c

Retail fraud in the first degree is the most serious level of this offense. It’s a felony punishable by up to 5 years in prison and/or a fine of up to $10,000 or three times the value of the stolen property—whichever is greater.

You can be charged with first-degree retail fraud if:

• The value of the property stolen is $1,000 or more; or
• The value is between $200 and $1,000 and you have a prior retail fraud conviction.

Retail Fraud in the Second Degree – MCL 750.356d(1)(b)

Second-degree retail fraud is a misdemeanor, but it still carries serious consequences. It is punishable by up to 1 year in jail and fines up to $2,000 or three times the value of the stolen property—whichever is greater.

To be charged with second-degree retail fraud, the value of the stolen property must be between $200 and $1,000, and the accused must have acted with intent to defraud the retailer.

Retail Fraud in the Third Degree – MCL 750.356d(4)

Third-degree retail fraud is the least severe level, but it still results in a permanent criminal record if convicted. This charge applies when the alleged value of the property is less than $200. It is punishable by up to 93 days in jail and fines up to $500 or three times the value of the stolen property—whichever is greater.

Even though this is considered a “minor” offense, it is still theft-related and can have serious consequences for employment and professional licensing.

How Michigan Prosecutors Charge Retail Fraud

Prosecutors have broad discretion when determining how to charge retail fraud. The charge level depends on the dollar value, the evidence, and sometimes your criminal history. Prosecutors often rely on surveillance footage, witness statements, and loss prevention officer reports. Intent can be inferred from your actions—even small details, like concealing an item or tampering with packaging, may be used as evidence.

In many cases, defendants are caught not by police but by store security personnel. These individuals may detain you until police arrive. You have rights during this stage: you can refuse to answer questions, and you should remain calm and cooperative. Do not make statements that could later be used against you.

Is Retail Fraud the Same as Theft?

While retail fraud involves theft, Michigan law distinguishes it from general larceny under MCL 750.356. Retail fraud specifically occurs in a store open to the public and involves an attempt to defraud a retailer. Larceny, on the other hand, covers a wider range of theft-related offenses not limited to a retail setting—such as stealing from a person, an employer, or a private residence.

That distinction matters because the penalties and defenses can vary significantly. Retail fraud is prosecuted differently than larceny and often includes evidence gathered by loss prevention officers or store surveillance rather than police investigators alone.

What About Civil Demand Letters?

Many individuals accused of retail fraud in Michigan receive a letter from a law firm or the store demanding payment—often referred to as a civil demand letter. Under Michigan law, stores have a right to recover property and additional civil damages from alleged shoplifters. However, paying a civil demand does not automatically make criminal charges go away. The store can still cooperate with police and prosecutors to pursue criminal action separately.

If you receive such a letter, it’s important to speak to a criminal defense attorney before paying. Sometimes, paying the demand may be used as an admission of guilt later. An experienced lawyer can help you decide the best course of action.

The Long-Term Consequences of a Retail Fraud Conviction

Even a minor retail fraud conviction can create lasting problems. Theft-related crimes are considered “crimes of dishonesty,” which means they are among the most damaging offenses you can have on your record. A conviction can affect:

• Employment Opportunities: Many employers view theft-related convictions as evidence of untrustworthiness, making it difficult to obtain or retain employment.
• Professional Licensing: Nurses, teachers, and other licensed professionals must often disclose convictions, and a theft offense may trigger disciplinary action.
• Immigration Consequences: Non-citizens—even those with green cards—could face immigration problems or removal proceedings for a theft offense.
• Housing and Education: Retail fraud convictions can appear in background checks for rental applications and college admissions.

The good news is that Michigan law provides mechanisms to keep your record clean if handled correctly. With the help of an experienced defense attorney, there may be opportunities for dismissal, diversion, or expungement.

Defenses to Retail Fraud Charges

Every retail fraud case is unique. Many people accused of shoplifting never intended to steal anything. Common defenses include:

• Lack of intent: Forgetting to pay or accidentally walking past a register isn’t enough for a conviction. The prosecution must show an intent to defraud.
• Mistaken identity: Surveillance footage isn’t always clear, and witnesses can misidentify suspects.
• Improper detention or illegal search: Store security employees and police must follow proper procedures. Violations of your rights can result in evidence being suppressed.
• Insufficient evidence: Without clear proof of intent or physical possession, the prosecution’s case may be too weak to sustain a conviction.

An experienced criminal defense lawyer can evaluate your case and determine the best defense strategy.

What to Do If You’re Charged with Retail Fraud in Michigan

Being accused of retail fraud can be stressful and intimidating, but you have rights. Here’s what you should do:

1. Remain Calm: Avoid arguing or making statements to store employees or police.
2. Don’t discuss your case: Anything you say can be used against you.
3. Call a defense lawyer as soon as possible. Early intervention can often lead to better results, such as getting the charges reduced or dismissed.

If you are facing a retail fraud or shoplifting charge, call Aaron J. Boria at (734) 453-7806 for a free consultation. We understand the local courts, prosecutors, and how to best handle these charges to protect your record and your future.

Can Retail Fraud Be Expunged in Michigan?

Yes, under Michigan’s updated expungement laws, most retail fraud convictions can eventually be set aside. The eligibility depends on the severity of the offense, your full criminal history, and the amount of time since conviction. Generally, misdemeanor retail fraud convictions can be expunged after 3 years, and felony convictions after 5 years if you have remained conviction-free.

Expungement can restore your ability to obtain employment, housing, and professional licenses, effectively giving you a clean slate. However, the expungement process can be complex, and it’s crucial to file the correct paperwork and meet all waiting period requirements. Having your attorney assist with this process can prevent costly mistakes.

Why You Need a Michigan Criminal Defense Attorney

Retail fraud cases vary from simple misunderstandings to complex investigations involving multiple incidents across different stores. A skilled attorney can:

• Analyze the prosecution’s evidence for inconsistencies.
• Challenge unlawful detentions or searches.
• Negotiate plea agreements or diversion programs aimed at dismissing the charge upon completion of counseling or restitution.
• Protect your record and help you qualify for expungement in the future.

Our firm has successfully defended hundreds of clients accused of theft and fraud across Michigan. We know the local courts, prosecutors, and legal strategies that can make a difference. If you’re facing a retail fraud charge, contact us at (734) 453-7806 for more information.

Conclusion

Retail fraud and shoplifting may seem like minor offenses, but under Michigan law, they carry lasting consequences that can follow you for years. The legal definition of retail fraud involves more than simply taking merchandise—it includes any act intended to defraud a store. Depending on the value involved and any prior history, charges can range from 93 days in jail to 5 years in prison.

More importantly, a retail fraud conviction can damage your reputation and limit future opportunities. That’s why it’s critical to have an experienced Michigan criminal defense attorney on your side. At B