Firm that teaches 'life skills' to suspected shoplifters extorts them, suit alleges
Source: LA times
The San Francisco city attorney filed suit Monday against a Utah-based company that asks suspected shoplifters to sign confessions and pay hundreds of dollars to take a six-hour life skills video course or risk prosecution, saying the firms practices amount to extortion and false imprisonment.
The suit was filed in San Francisco County Superior Court against Corrective Education Co., which goes by the name CEC and was founded in 2010 by two Harvard Business School graduates.
The company calls itself the leading provider of restorative justice education, and purports to give low-level, first-time shoplifters a valuable opportunity to learn how to make better choices, while saving them a criminal record.
Retailers who have contracted to use the program include Bloomingdale's, Walmart, Burlington Coat Factory, DSW Inc., and Goodwill Industries of Orange County, according to documents and interviews.
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The companys vision involves making threats and false and misleading statements to people detained by private security guards in the back room of a store to induce them to sign unlawful and unconscionable contracts confessing to crimes, the lawsuit contends.
The suspected shoplifters then agree to pay CEC hundreds of dollars for an educational video program that operates without the knowledge or involvement of the criminal justice system, and that flouts many of the laws that regulate pretrial diversion programs as well as a host of other laws, the lawsuit says.
Read more: http://www.latimes.com/local/lanow/la-me-ln-shoplifting-suit-20151123-story.html
TheBlackAdder
(28,181 posts).
There was either a Dateline or 60 Minutes type of expose on this back in the 80s or 90s.
The loss prevention agent took an employee in the back room and threatened them with jail time, saying they had proof the employee was stealing, leaning on them so hard they would eventually cop to taking penny candy on the counter. Then they were told to sign a confession and pay $400 or they would be arrested.
This place is still in business and I am not mentioning their name because I don't feel like tracking down the case!
It's searchable.
Update: Here's the write-up, with a $5.5M settlement:
http://articles.philly.com/1986-12-25/news/26070487_1_suit-coercing-employees-charges
http://articles.philly.com/1990-08-01/news/25934004_1_cumberland-farms-cashiers-confessions
http://articles.philly.com/1993-06-25/news/25972086_1_cashiers-cumberland-farms-settlement
.