Calif. bill targets theft at retailers

Could lead to limits on self-checkout service

A bill in California could lead to fewer self-checkout kiosks in the Golden State.

California Senate Bill 1446, part of a legislative package introduced by state Sen. Lola Smallwood-Cuevas in February, would require many large grocery and drug retail stores to staff up their self-checkout stations.

Experts say the bill could result in more stores moving away from the technology, which aims to reduce labor costs.

The proposed mandates come as retailers continue to voice concerns about “shrinkage,” an industry term for missing inventory from theft, broken items and other factors.

The bill’s goal, according to testimony from Smallwood-Cuevas in a hearing earlier this year, is to reduce retail theft while also adding jobs and protecting workers and shoppers.

Critics say the bill would impose unnecessary regulations on stores that already are starting to limit or scale back their use of self-checkout.

SB 1446 would prohibit grocery and retail drug stores from offering selfcheckout services unless:

● Employees monitor no more than two self-checkout stations at a time and are relieved from all other duties while working with self-checkouts.

● Self-checkout lanes are limited to purchases of 10 or fewer items.

● Stores prohibit customers from using self-checkout to purchase items that require identification, such as alcohol, and items subject to theft-deterrent measures, including surveillance tags.

● At least one manual checkout station is made available when self-service is available.

It would also require stores to complete a worker and consumer impact assessment before implementing certain technologies, including artificial intelligence.

Proponents say the bill, supported by the United Food and Commercial Workers union, would create jobs while alleviating retail theft in California.

In a 2022 survey from the ECR Retail Loss Group, 93 global retailers estimated that self-checkout systems accounted for as much as 23% of their total unknown store losses. Two-thirds said losses from self-checkout were becoming more of a problem.

But opponents say it would impose unnecessary, one-size-fits-all restrictions on retailers.

“These measures will only serve to frustrate consumers with no evidence that they will reduce theft or provide additional protection to employees,” said Margaret Gladstein, speaking for the California Retailers Association at an April hearing.

A number of organizations are instead pushing for harsher punishments for those caught stealing from retailers. A proposed California ballot initiative would allow the state to increase criminal penalties for people who repeatedly steal.