AAFES implements civil recovery program for shoplifters

  • Published
  • (Information courtesy of Army and Air Force Exchange Services)
Inventory shrinkage, a combination of employee theft, shoplifting, vendor fraud and administrative error, cost the nation's retailers $32.3 billion last year, according to the national retail security survey, which analyzed theft incidents from 116 of the largest retail chains.
Thirty-one percent of the losses were the result of shoplifters. The Armed Forces Exchanges are no different.
"Shoplifters will be prosecuted," said Becky Stover, Whiteman base exchange manager. "These are valuable dollars that can be re-directed back into our community."
Shoplifting along with gas drive-offs in the military exchanges annually cost service members millions of dollars. The cost of detecting and preventing shoplifting, currently absorbed by nonappropriated funds, is substantial.
The Army & Air Force Exchange Services alone catches on average 11,211 shoplifters each year. AAFES' mission is to give 100 percent of earnings back to our customers through quality of life programs and modern places to shop.
""The Whiteman BX generated more than $371,000 last year in support of morale, welfare and recreation for this community," Mrs. Stover added.
The expenses related to shoplifting, theft prevention and detection reduce the monies available for that mission.
The number one reason for shoplifting is that it's easy and there's little or no risk involved. Thus, almost all-50 states have "civil recovery" laws.
By the establishment of these laws, it was believed that shoplifters would pay a higher price for their theft, retailers would benefit by reduced recidivism and added revenue, the load would be reduced on the criminal court docket and, ultimately, shoplifting would decline.
AAFES and DoD sought legislation, which would grant federal retail stores the right to create civil recovery programs.
The National Defense Authorization Act for Fiscal Year 2002 amended the Federal Claims Collection Act by redefining a "debt" as it relates to nonappropriated funds.
Specifically, the Act now states that "A claim includes, without limitation . . . expenditures of nonappropriated funds, including actual and administrative costs related to shoplifting, theft detection, and theft prevention," 31 USC 3701(b)(1)(B).
The amendment allows instrumentality's operating federal retail stores to pursue losses and administrative costs directly relating to shoplifting, theft detection and theft prevention as claims of the United States recoverable from the shoplifter through existing federal debt collection methods.
Since AAFES implemented its civil recovery program in 2002, AAFES pursues the actual loss of the merchandise taken by charging a flat rate administrative cost on every shoplifting incident.
The actual loss to AAFES for the merchandise mirrors that of state civil recovery statutes: If the merchandise is not returned to the store or is not returned in merchantable condition, then AAFES will demand the full retail value of the item.
"The civil recovery program does include gas drive-offs, which unfortunately are on the rise here," Mrs. Stover said.
If the merchandise is recovered damaged but salable, AAFES will demand the difference between the full retail value and the reduced sale value. The administrative cost will be $200, which does not fully recoup AAFES' administrative costs related to shoplifting, theft detection and theft prevention.
The store manager of the facility where the shoplifting occurred will send two demand letters for money damages. Should the debt remain unpaid for 30 days the store manager will notify the unit commander of the debt.
The general manager serves as the local review authority. The suspected shoplifter or sponsor may seek review of the debt by writing the GM within 30 days of the demand letter.
The GM will review all available evidence and may under limited circumstances waive the indebtedness. If the debt is not collected locally, then after 90 days the exchange will write off the debt and transfer it to headquarters, AAFES, financial management and accounting directorate.
The FA will collect the debt under the treasury offset program (a centralized debt collection program developed by the financial management service under the Debt Collection Improvement Act of 1996).
Under the civil recovery program, military sponsors are responsible for their family members. A parent, guardian or other person having legal custody of an unemancipated minor who commits the offense of shoplifting shall be liable to AAFES for the damages and costs specified in this section.
The civil recovery program is separate from any criminal prosecution initiated by appropriate legal authority. Nor is a conviction or a plea of guilty, for theft necessary to pursue civil recovery under this section. The collection action is in addition to any criminal, disciplinary action, or suspension of privileges.
The military sponsor's check cashing and deferred payment plan privileges will be suspended until the debt is paid or waived.