Penal Code § 490.4 PC – Organized Retail Theft

California Penal Code § 490.4 PC makes it a crime to commit organized retail theft, which is when two or more people act to steal merchandise from a brick-and-mortar store or online marketplace. Depending on the case, organized retail theft can be prosecuted as a felony or a misdemeanor.

The full statute reads as follows:

PC 490.4.  Organized retail theft

(a) A person who commits any of the following acts is guilty of organized retail theft, and shall be punished pursuant to subdivision (b):
(1) Acts in concert with one or more persons to steal merchandise from one or more merchant’s premises or online marketplace with the intent to sell, exchange, or return the merchandise for value.
(2) Acts in concert with two or more persons to receive, purchase, or possess merchandise described in paragraph (1), knowing or believing it to have been stolen.
(3) Acts as an agent of another individual or group of individuals to steal merchandise from one or more merchant’s premises or online marketplaces as part of an organized plan to commit theft.
(4) Recruits, coordinates, organizes, supervises, directs, manages, or finances another to undertake any of the acts described in paragraph (1) or (2) or any other statute defining theft of merchandise.

(b) Organized retail theft is punishable as follows:
(1) If violations of paragraph (1), (2), or (3) of subdivision (a) are committed on two or more separate occasions within a 12-month period, and if the aggregated value of the merchandise stolen, received, purchased, or possessed within that 12-month period exceeds nine hundred fifty dollars ($950), the offense is punishable by imprisonment in a county jail not exceeding one year or pursuant to subdivision (h) of Section 1170.
(2) Any other violation of paragraph (1), (2), or (3) of subdivision (a) that is not described in paragraph (1) of this subdivision is punishable by imprisonment in a county jail not exceeding one year.
(3) A violation of paragraph (4) of subdivision (a) is punishable by imprisonment in a county jail not exceeding one year or pursuant to subdivision (h) of Section 1170.

(c) For the purpose of determining whether the defendant acted in concert with another person or persons in any proceeding, the trier of fact may consider any competent evidence, including, but not limited to, all of the following:
(1) The defendant has previously acted in concert with another person or persons in committing acts constituting theft, or any related offense, including any conduct that occurred in counties other than the county of the current offense, if relevant to demonstrate a fact other than the defendant’s disposition to commit the act.
(2) That the defendant used or possessed an artifice, instrument, container, device, or other article capable of facilitating the removal of merchandise from a retail establishment without paying the purchase price and use of the artifice, instrument, container, or device or other article is part of an organized plan to commit theft.
(3) The property involved in the offense is of a type or quantity that would not normally be purchased for personal use or consumption and the property is intended for resale.

(d) In a prosecution under this section, the prosecutor shall not be required to charge any other coparticipant of the organized retail theft.

(e) Upon conviction of an offense under this section, the court shall consider ordering, as a condition of probation, that the defendant stay away from retail establishments with a reasonable nexus to the crime committed.

Legal Analysis

California Penal Code 490.4 PC defines the crime of “organized retail theft” as either of the following four actions:

1.  Two or more people acting to steal merchandise from a store (in person or online) with the intent to sell, exchange, or return the merchandise; or
2. Two or more people acting to receive, buy or possess merchandise they believe was stolen through organized retail theft; or
3. Acting as an agent of one or more people to steal merchandise as part of an organized retail theft plan; or
4. Coordinating, financing, or recruiting for an organized retail theft.¹

California has seen a surge in organized retail theft, particularly in Los Angeles and San Francisco. The most notable incident occurred in the Westfield Topanga Nordstrom, where 30 masked robbers “smashed-and-grabbed” their way to stealing more than six figures worth of luxury merchandise.²

How Courts Distinguish Between Larceny and Organized Retail Theft

To determine whether you should be prosecuted for organized retail theft rather than petty larceny or grand larceny, courts consider such relevant factors as whether:

1. you previously conspired with others to carry out a theft or related offense;
2. you had tools that would help steal and carry away merchandise; and
3. the stolen property is of the type of quantity that suggests it is intended for resale.³

Example: Jeff is on trial for organized retail theft after being caught stealing iPhones from an Apple Store at night. At the time he was carrying common burglary tools like crowbars and vise grip pliers. Police also saw three other masked men who got away. Although Jeff claimed he acted alone, the court can take these surrounding circumstances into account when deciding whether he committed organized retail theft.

The Penalties for PC 490.4 Convictions

Organized retail theft of $950 or less is a California misdemeanor carrying up to one year in jail. Otherwise, violating PC 490.4 is a wobbler, meaning that prosecutors can charge it as a felony or a misdemeanor. Felony organized retail theft carries a prison sentence of

• 16 months,
• 2 years, or
• 3 years.

Additional penalties include fines and paying restitution for the stolen items. Plus if you are granted probation, the judge can order you to stay away from the stores targeted in your case.

Note that you can be convicted of violating PC 490.4 even if the other person(s) you were acting with are never caught, charged, or convicted.⁴

Also note the court can issue a two-year restraining order barring you from entering the retail establishment you were convicted of stealing from.⁵

Related Offense

It is a separate crime under PC 496.6 to possess shoplifted retail property valued at more than $950 with the intent to sell, exchange, or return it. This offense – called unlawful deprivation of a retail business opportunity – is a wobbler.

As a misdemeanor, violating PC 496.6 carries up to one year in jail. As a felony, violating PC 496.6 carries a jail sentence of either:

• 16 months,
• 2 years, or
• 3 years.

You may face sentencing enhancements for selling, returning, or exchanging property you acquired through retail theft, as this chart shows:⁶

Value of Property Acquired through Retail Theft	Sentencing Enhancement in California for Selling, Exchanging, or Returning the Property
Greater than $50,000 to $200,000	1 year
Greater than $200,000 to $1,000,000	2 years
Greater than $1,000,000 to $3,000,000	3 years
Greater than $3,000,0000	4 years plus 1 year for each property value of $3,000,000

PC 490.4 is California’s organized retail theft law.

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Legal References

1. California Penal Code 490.4 PC – Organized retail theft. AB 331 (2021). SB 982 (2024).
2. Richard Winton and Nathan Solis, Flash mobs invade luxury L.A. retailers with brute force, overwhelming numbers, Los Angeles Times (August 16, 2023).
3. PC 490.4.
4. PC 490.4.
5. PC 490.8. AB 3209 (2024).
6. SB 1416 (2024). PC 12022.10.