Understanding Misdemeanor Retail Theft vs Felony Retail Fraud: Key Differences and Legal Implications

What Michigan Law Says About Retail Fraud

In Michigan, retail theft is legally referred to as retail fraud, governed primarily by Michigan Compiled Laws (MCL) 750.356c and MCL 750.356d. The term covers a wide range of conduct, including:

• Physically taking merchandise from a store without paying;
• Switching or altering price tags to pay less than the actual retail price;
• Attempting to return merchandise that was stolen for a refund or store credit.

Michigan’s retail fraud statute also covers acts that are attempted—meaning you don’t necessarily need to get away with the merchandise to face charges. Even hiding merchandise with the intent to steal it can be evidence of retail fraud.

Misdemeanor Retail Fraud in Michigan

Misdemeanor forms of retail fraud fall under two categories: Second Degree Retail Fraud and Third Degree Retail Fraud. The degree determines how severe the potential punishment will be.

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

Second degree retail fraud occurs when the value of the stolen property is at least $200 but less than $1,000, or if the person has a prior retail fraud conviction and steals property valued under $200. It is a misdemeanor punishable by up to one year in the county jail and fines up to $2,000 or three times the value of the property stolen, whichever is greater.

Retail Fraud in the Third Degree – MCL 750.356d(1)(a)

Third degree retail fraud is charged when the value of the property stolen is less than $200. This is considered a lower-level misdemeanor, but it still carries serious consequences—up to 93 days in jail, fines up to $500, or up to three times the value of the stolen property, whichever is greater.

Examples of Misdemeanor Retail Fraud

• Taking small items like clothing, snacks, or makeup from a retail store.
• Switching a price tag on a pair of shoes to pay less than the listed price.
• Attempting to return an item stolen from another location of the same store.

Even minor thefts can appear on your criminal record, causing long-term consequences for employment, professional licensing, and background checks.

Felony Retail Fraud – When Theft Becomes a Serious Crime

Felony retail fraud—officially known as Retail Fraud in the First Degree—is the most serious form of retail theft under Michigan law.

Retail Fraud in the First Degree – MCL 750.356c

This offense is charged when the value of the stolen merchandise is $1,000 or more, or when the offender has a prior retail fraud conviction and steals between $200 and $1,000 worth of goods. It is classified as a felony punishable by up to 5 years in prison and fines up to $10,000 or three times the value of the stolen goods, whichever is greater.

Felony Enhancements

Michigan law allows “value aggregation,” meaning multiple theft incidents from the same store or chain can be combined within a 12-month period to reach a total value that turns the charge into a felony. This often happens in cases of organized retail theft or repeated shoplifting behavior across multiple store visits.

Examples of Felony Retail Fraud

• Stealing electronics totaling over $1,000 from a department store.
• Repeatedly taking smaller items from the same store over a period of time.
• Being caught committing retail fraud again after a previous conviction.

Felony retail fraud charges are not limited to large thefts. Prior convictions or evidence of an organized scheme can quickly elevate the severity of the case, even for what appears to be a relatively minor theft.

Key Differences Between Misdemeanor Retail Theft and Felony Retail Fraud

While both misdemeanor retail theft and felony retail fraud share many similarities in conduct, the main differences come down to value, intent, and prior criminal history.

The distinction between misdemeanor and felony is not just about the amount stolen—it’s about how prosecutors interpret the totality of your conduct and history. Even an allegation of altering a price tag can lead to a serious charge, especially if law enforcement believes you acted intentionally or as part of a repeated pattern.

The Court Process for Retail Fraud Cases in Michigan

Whether charged as a misdemeanor or felony, retail fraud follows the standard Michigan criminal procedure. Understanding the stages can ease anxiety and help you make informed decisions.

1. Arrest or Citation

Retail theft cases often start with an arrest by store security or police called to the scene. Sometimes, a suspect receives a citation requiring them to appear in court rather than being taken into custody.

2. Arraignment

Your case begins in district court for arraignment. The judge reads the charge, advises you of your rights, and sets bond conditions. Misdemeanor cases typically stay at the district court level, while felony retail fraud cases may later move to circuit court if bound over after a preliminary examination.

3. Pretrial Proceedings

At this stage, your defense lawyer will review police reports, surveillance footage, witness statements, and any evidence the prosecution intends to use. Motions may be filed to suppress illegally obtained evidence or to request discovery that can help your defense.

4. Plea Negotiations

Many retail fraud cases are resolved before trial through plea negotiations. Your attorney may negotiate a reduction to a lesser misdemeanor or secure a sentencing agreement that avoids jail time. Sometimes, first-time offenders qualify for diversion programs, allowing charges to be dismissed after completion of restitution and community service.

5. Trial

If no resolution is reached, your case proceeds to trial. The prosecution must prove every element of the offense beyond a reasonable doubt. That includes proving intent to steal. If you accidentally left the store with unpaid merchandise, that could serve as a valid defense.

6. Sentencing

Upon conviction, the judge will consider prior criminal history, restitution to the retailer, and whether the theft was part of an organized pattern. Sentences can range from fines and probation to incarceration in serious cases.

Defenses to Retail Fraud Charges

Not every retail theft case ends in conviction. Michigan law requires proof of intent and specific conduct. Common defenses include:

• Lack of Intent: Forgetting to pay or accidentally leaving a store with an item does not meet the intent requirement for retail fraud.
• Mistaken Identity: Surveillance footage can be unclear or misinterpreted, leading to inaccurate accusations.
• False Allegations: Store employees or security personnel may misinterpret actions or exaggerate events.
• Ownership or Right to Possession: If you had a legitimate claim to the property, that can negate the “intent to steal.”
• Illegal Search or Seizure: Evidence obtained in violation of your rights can be excluded.

An experienced criminal defense attorney can identify weaknesses in the prosecution’s case and fight for dismissal or charge reduction. Every element must be proven beyond a reasonable doubt, and if any part of the case is flawed, you should not be convicted.

Collateral Consequences of Retail Fraud Convictions

Even after serving a sentence or paying fines, retail fraud convictions carry long-term repercussions. These include:

• Difficulty finding employment or professional licensing due to theft-related offenses on your record.
• Loss of trust for positions involving cash handling or inventory management.
• Potential immigration consequences for non-citizens, as theft can be considered a crime of moral turpitude.
• Loss of eligibility for certain educational programs or housing opportunities.

Protecting your future means addressing the charge effectively from the start, not waiting until after sentencing to take action.

Getting Legal Help for Retail Fraud Charges in Michigan

If you’ve been accused of stealing from a store, do not assume it’s a minor matter. Even a misdemeanor conviction can have lasting consequences. The earlier an attorney becomes involved, the better your chances of reaching a favorable outcome.

Criminal defense lawyer Aaron J. Boria has successfully defended clients accused of retail fraud across Michigan. Whether your case involves a first-time misdemeanor or a felony retail theft allegation, we provide aggressive and strategic representation designed to protect your rights and minimize penalties.

Call us today at (734) 453-7806 for a free consultation. You can also learn more about our practice as a trusted Michigan criminal defense attorney.

Conclusion

The difference between a misdemeanor retail theft and a felony retail fraud charge in Michigan can be life-changing. What may seem like a minor incident can quickly escalate into a serious felony depending on the value of the property, your prior criminal record, and the prosecutor’s charging decisions. Understanding the Michigan retail fraud statutes, potential penalties, and effective defenses allows you to make informed decisions and plan your next steps.

At Boria Law, we understand how difficult it is to face theft accusations. We’ve obtained dismissals, charge reductions, and resolutions that preserve our clients’ records and protect their futures. If you’re facing retail theft or retail fraud charges, don’t wait. Contact us today at (734) 453-7806 for immediate help and begin taking control of your case.