Civil recovery is a process whereby someone caught with unpaid merchandise (criminally charged or not) is threatened with a civil lawsuit unless they agree to pay a "settlement amount" ranging from $200 to $500 in damages.
The letter, heavy on the legalese, warns that if payment is not made by the due date, amounts will increase. Instructions for payment list the payee as "Civil Recovery."
"Civil recovery letters are an example of legal strong arming, written with a pay or else slant," says Sil Salvatarra of the Community and Legal Aid Services Program at Osgoode Hall Law School in Toronto. "These densely written letters, filled with legal language may be unclear and frightening to people who have no knowledge of this language."
Others, such as new immigrants, may entertain more serious fears of going to court. Some fear the legal system of a new country while others fear legal problems may interfere with their immigration claims. Too often, they pay the demand without seeking legal advice.
The letters, similar to a direct mail campaign, function only to line the pockets of the retailers and legal agencies involved by bullying vulnerable and unsuspecting people into paying what amounts to little more than an illegal fine.
Civil Recovery Victims
"Ninety-five percent of my civil recovery clients are women who do not speak English as a first language," says Karen Andrews of Rexdale Community Legal Clinic in Toronto. "The letters are probably working for retailers as there are a fair number of people who will just send in the money."
Julia, a young mother who speaks very little English, left a grocery store unaware that her toddler had grabbed a spoon. She received a letter demanding three hundred dollars. Fearing an unknown legal system, she was eager to pay, even though, as a new immigrant, she could not afford the settlement amount. Fortunately, she sought legal advice.
"Too many vulnerable people are getting these letters," says Stewart Cruikshank of East Toronto Community Legal Services. In many cases, paying the demand means not paying the rent or buying groceries.
Luba, an unemployed grandmother visiting Canada to help her newly widowed daughter with child care, ate a few pistachios lying in the bottom of a bin while grocery shopping. She does not speak English and was terrified by her experience at the hands of overzealous security personnel and consequently, wanted to pay the settlement amount demanded in the letter.
In both cases, Cruikshank was able to meet his biggest challenge, convincing clients not to pay the demand. This is especially true in cases where parents believe their children really did intend to shoplift.
Legal Ethics
Further questions of legal ethics arise when one considers letters are sent out without an investigation into individual cases.
"There is a presumption of guilt on the part of the retailer where none exists, where none has been proven. A mistake does not constitute criminal intent," says Andrews. "Retailers have a better chance of success with the letters, so they are reluctant to pursue a civil action in court."
Retailers Position
In their defense, large retailers put shoplifting costs at anywhere between $1.5 to $4 billion annually. They estimate that the average civil recovery demand of $325 will cover the typical case's theft-related costs such as security personnel and equipment, administration and restocking shelves.
"There seems to be no correlation between the value of merchandise involved and the amount requested for settlement. People are being picked up for the smallest things," Cruikshank notes. "Right now, the letters are just harassment, but a precedent-setting victory for a retailer in civil court could have serious consequences."
Retailers would be further justified in their use of private policing services with the authority to detain "suspects". It's not clear if loss prevention officers are hired to prevent theft or to target potential civil recovery victims.
