August 21, 2017
On August 18, Making Change at Walmart (MCAW) Director Randy Parraz issued a statement in response to a California court ruling that a shoplifter diversion program used by Walmart constitutes “false imprisonment and extortion.” The program used by Walmart and other California retailers is provided by Corrective Education Company (CEC).
The statement reads as follows:
“While we are glad that real justice has been served to California shoppers who have been victimized by Walmart’s use of Corrective Education Company’s program, the problem remains that the ruling does not stop Walmart, the largest retailer in the U.S., from using the offensive CEC program in other states.
“The fact that Walmart allowed a private company like CEC to embed itself inside its stores; falsely imprison; fingerprint, and document suspected shoplifters in a backroom; and then extort them for money, is beyond disgraceful.
“Walmart shoppers nationwide deserve assurance that they will not be victimized by a program that subjects them to false imprisonment and extortion if they are suspected of shoplifting. This isn’t the Wild West anymore, and its time Walmart immediately stops using the offensive CEC or similar programs in all its stores nationwide.”
In California, Walmart has put more people through CEC’s program than any other retailer in the state. According to documents filed in the case, Walmart enrolled 3,597 people in the program—a third of all CEC participants in California—as of April 2017. The court found that California retailers using the CEC program, like Walmart, were “acting in concert and are jointly liable for the extortionate conduct.”
MCAW has been closely following and speaking out against Walmart’s Restorative Justice program, which utilizes pre-charge companies like CEC in 1,500 Walmart locations nationwide. MCAW has also been working with state legislators to further investigate and take legislative action against this controversial practice.