Posted to SLAW on April 1, 2015
For roughly 30 years, some Canadian lawyers have been engaging in a practice that other Canadian lawyers have vociferously criticized as “extortion with letterhead,” “bullying and intimidation”, a “predatory practice” and “an example of legal strong-arming.” Members of the public have also chimed in, characterizing the practice as “morally wrong” and “like being stabbed in the back”.
The practice at issue is the sending of shoplifting demand letters. In short, this involves lawyers acting for retailers sending letters to alleged shoplifters and/or their parents demanding the payment of money.
To take one example reported in the media, in 2004, one mother received a letter from a lawyer for a retailer four months after her daughter was caught trying to steal lip gloss. The letter “demand[ed] [the mother] pay $379 to help defray the cost of shoplifting or face the consequences, threatening a civil lawsuit for as much as $900.” To take another, more recent, example, in 2012, an eighteen year old paid $610 in response to a demand letter after she was caught stealing just over six dollars in cosmetics.