Organized retail theft has become a growing concern, impacting businesses, communities, and consumer trust. Online marketplaces have unintentionally facilitated the sale of stolen goods, prompting California State Senator Nancy Skinner to introduce Senate Bill 1144 (SB 1144). This legislation, effective July 1, 2025, strengthens regulations for online marketplaces, enhances accountability, and aims to curb the sale of stolen items. 
Building on previous laws like SB 301 (2022), SB 1144 closes loopholes and imposes stricter requirements on high-volume sellers and platforms. This blog delves into SB 1144, exploring its provisions and potential impact.

Understanding the Need for SB 1144

Online marketplaces have transformed how people buy and sell goods, offering convenience and accessibility. However, they have also inadvertently provided a platform for organized retail theft rings to profit from stolen merchandise.
According to estimates, $500 billion of stolen or counterfeit products are sold annually through online marketplaces. Organized theft rings often operate with surprising sophistication, employing individuals to steal high-demand goods from brick-and-mortar stores. These stolen items are then resold online, allowing ringleaders to generate millions in illicit profits.
In one high-profile example, a wealthy Southern California couple reportedly orchestrated a scheme to hire individuals to steal beauty products from retailers. By selling these stolen items online, they amassed over $8 million. Such cases highlight the need for stricter regulations and enforcement mechanisms to combat organized retail theft outlined in this bill and in some others such as the AB 3209.

Key Provisions of SB 1144

SB 1144 aims to eliminate online marketplaces as a haven for stolen goods. To achieve this, the bill introduces several new provisions while strengthening existing ones established under SB 301.

High-Volume Seller Criteria
Under SB 1144, a high-volume seller is defined as an individual or entity completing 200 or more transactions annually involving goods valued at a minimum of $5,000. The bill expands the scope to include sellers who advertise goods online but finalize transactions offline. This closes a significant loophole, as many theft rings avoid detection by circumventing the online marketplace's payment systems.

Accountability and Verification
SB 1144 mandates that high-volume sellers comply with the verification and accountability requirements introduced in SB 301. Online marketplaces must:

• Verify Seller Identity: SB 1144 requires online marketplaces to confirm the identity of high-volume sellers to ensure they are legitimate and operating within legal parameters. This measure is essential in preventing fraudulent sellers from exploiting the platform to sell stolen or counterfeit goods. By confirming the identity of sellers, the bill helps protect consumers and legitimate businesses from the adverse effects of online fraud.
• Inform Consumers: The bill mandates that online marketplaces inform consumers when high-volume sellers have been verified. This helps enhance transparency and allows buyers to make informed decisions when purchasing goods. Notifying consumers of verified sellers fosters trust in the platform, making shoppers more confident that they are not inadvertently purchasing stolen items.
• Flag Suspicious Sellers: SB 1144 requires online marketplaces to flag any high-volume sellers that are suspected of selling stolen goods and report them to law enforcement. This helps create a proactive approach to combat organized retail theft, enabling authorities to take swift action before the stolen goods can be further disseminated. By actively engaging law enforcement, the bill ensures that marketplaces are not inadvertently facilitating criminal activity.

Enforcement Mechanisms
The bill broadens enforcement authority by allowing local district attorneys, city attorneys, and county counsels to file civil charges against online marketplaces or individuals engaged in selling stolen goods. Violators face penalties of up to $10,000 per violation, ensuring significant deterrence.

Consumer Transparency
By requiring marketplaces to inform consumers about the verification status of high-volume sellers, SB 1144 enhances consumer confidence and trust. This transparency serves as an added layer of protection, reducing the risk of unsuspecting buyers purchasing stolen goods.

Bipartisan Support and Collaboration

The unanimous passage of SB 1144 in both the California State Senate (37-0) and the State Assembly (73-0) underscores the legislation's broad bipartisan appeal. Lawmakers from across the political spectrum recognized the widespread impact of organized retail theft on businesses, communities, and consumers.
In addition to legislative support, SB 1144 received endorsements from a diverse coalition of stakeholders, including retailers, law enforcement agencies, and local governments. The California Retailers Association commended the bill for its balanced approach, which addresses organized theft without hindering legitimate online commerce.
Rachel Michelin, president and CEO of the California Retailers Association, described SB 1144 as a vital step forward. “This legislation brings critical updates to the criteria for high-volume third-party sellers and improves measures required for online marketplaces to prevent the trafficking of stolen goods,” Michelin said.

Broader Implications of SB 1144

SB 1144 represents a proactive approach to tackling organized retail theft, targeting high-volume sellers and increasing marketplace accountability. The bill aims to disrupt criminal enterprises by tightening regulations around online transactions, especially for those involved in large-scale sales of stolen goods. By addressing these specific sellers, SB 1144 makes it more difficult for thieves to launder stolen products through online platforms, reflecting the need for modernized solutions to combat digital-age crimes.
The bill also enhances consumer confidence by ensuring greater transparency in online marketplaces. With clearer verification processes for high-volume sellers, consumers can trust that the goods they purchase are legitimate. This increased transparency reduces the risk of unknowingly buying stolen items, which in turn strengthens the credibility and reliability of online shopping platforms.
For businesses, SB 1144 provides much-needed protection against losses from retail theft by preventing criminals from undercutting legitimate sellers with stolen merchandise. By closing regulatory loopholes and ensuring stricter oversight of high-volume sellers, the bill creates a fairer competitive environment for retailers. This not only supports legitimate commerce but also fosters trust among consumers and businesses in the integrity of online marketplaces.

Looking Ahead

As SB 1144 comes into effect on July 1, 2025, its impact will largely depend on effective implementation and enforcement. Online marketplaces must adapt to the new requirements, investing in systems to verify sellers, detect suspicious activities, and collaborate with law enforcement.
For consumers, the bill signals a safer online shopping experience. Increased transparency and accountability will help restore trust in digital marketplaces, making them less attractive to criminal enterprises.
Businesses, too, stand to benefit from the reduced prevalence of stolen goods circulating online. By cutting off the channels through which stolen items are sold, SB 1144 aims to protect legitimate retailers and deter theft at its source.
For those understanding the complexities of compliance and enforcement in light of SB 1144, seeking professional legal guidance with a criminal law firm is critical. Bulldog Law, with its expertise in online marketplace regulations and business law, stands ready to assist businesses, online platforms, and individuals in adapting to this new regulatory landscape. Let's work together to create safer, more trustworthy digital marketplaces.