Retail Fraud in Michigan

A plain-language look at second- and third-degree retail fraud in Michigan: what the charge covers, the dollar amounts and penalties, arraignment, the store's civil demand letter, HYTA and delayed sentencing, and what to gather and avoid.

What Retail Fraud Means

Retail fraud is Michigan's name for shoplifting and related conduct in a store. It is covered by MCL 750.356d for the misdemeanor levels. The charge applies to conduct in a store or its immediate vicinity, and includes:

Taking store merchandise while the store is open
Switching, removing, or hiding price tags to pay less than the posted price
Getting a refund or exchange for merchandise that was never paid for

For a theft charge, the prosecutor must prove you intended to steal, meaning to take the item permanently without the store's consent. Any movement of the item is enough. You do not have to get past the cashier or leave the store.

This guide is written for people with cases in Downriver (Wayne County), Monroe County, and elsewhere in Michigan.

Second Degree vs. Third Degree

The level of the charge depends mostly on the dollar amount involved.

Third degree: less than $200. A misdemeanor with up to 93 days in jail and a fine of up to $500 or 3 times the value, whichever is greater.
Second degree: $200 or more but less than $1,000. A misdemeanor with up to 1 year in jail and a fine of up to $2,000 or 3 times the value, whichever is greater.

A third-degree charge can be raised to second degree if you have a prior conviction for retail fraud, larceny, or certain related offenses. Amounts from separate incidents within a 12-month period can also be added together.

First degree is $1,000 or more, under MCL 750.356c. It is a felony with up to 5 years in prison and a fine of up to $10,000 or 3 times the value, whichever is greater. A second-degree charge can become first degree with certain prior convictions.

Arraignment and Bond Conditions

Your first court date is the arraignment, in the district court where the incident happened, such as the 1st District Court in Monroe County or one of the district courts in Downriver (Wayne County). Under the Michigan Court Rules, the court must tell you:

The charge and the maximum sentence the law allows
Your right to a lawyer at every court date, including the arraignment, and to a trial, including a jury trial when the law provides one
Your right to an appointed lawyer if you cannot afford one and jail is possible

The court also sets your release terms, such as bond and any conditions.

The court rules allow release conditions such as not committing any new crime and not entering specified places, which can include the store where the incident happened. If a condition is hard to follow, for example because the store is where you buy groceries or work, raise it with the court through your lawyer instead of ignoring it.

The Store's Civil Demand Letter

Many people receive a letter from the store, or from a law firm working for the store, demanding money. This is a separate civil claim allowed by MCL 600.2953, not part of the criminal case. Under that law, the store can demand:

The full retail price of merchandise that was not recovered or cannot be resold
Civil damages of 10 times the retail price, but not less than $50 or more than $200

If you pay what is demanded within 30 days after the letter was mailed, the store cannot take further civil action against you. Paying the letter does not stop the criminal case. The letter must say you are not required to respond if you believe you are not responsible.

Talk with your lawyer before you pay or respond, so the civil claim and the criminal case are handled together.

Options That May Keep a Conviction Off Your Record

Depending on your age and history, the court may consider one of these options:

HYTA (the Holmes Youthful Trainee Act, MCL 762.11): if you were 18 through 25 years old when the offense happened, the court may place you on youthful trainee status after a guilty plea, without entering a conviction. If you were 21 or older, the prosecutor must also agree. If you complete the terms, the case is dismissed, it is not a conviction, and the record is closed to public inspection.
Delayed sentence (MCL 771.1): the court may delay sentencing for up to one year to give you a chance to show that you qualify for probation or other leniency. What happens at the end of the delay depends on the court and on any agreement in your case.

Whether either option is available depends on the prosecutor, the judge, and your record. Your lawyer can tell you whether it makes sense to ask.

What to Gather, What to Avoid, and the Bottom Line

Keep everything in one folder: any citation or charging papers, your bond paperwork, your court notices, any receipts, and any letter from the store or its lawyers. Write your own notes about what happened while your memory is fresh, and share them only with your lawyer.

What not to do:

Do not talk about your case on social media.
Do not discuss the details with anyone except your lawyer. Conversations with friends, family, or the police are not confidential.
Do not go back to the store if your bond or the store has told you not to.
Do not pay or sign anything from the store's lawyers before talking with your own.
Do not miss court. A missed date can lead to a bench warrant.

A retail fraud charge can seem small, but a theft conviction can affect jobs and background checks. Know the level of your charge, keep the civil letter and the criminal case separate in your mind, and get answers about your own situation early from a local attorney.

How I Can Help

If you are facing a retail fraud charge in Downriver (Wayne County), Monroe County, or nearby, I can review your paperwork, explain the process and your options, and represent you in court.

Call (734) 775-9327 or use my contact form for a free consultation.

This guide is general information about Michigan law, not legal advice. Laws change, and every case is different. Reading this page does not create an attorney-client relationship.