The £15m scandal our libel laws are silencing

Alan White explains how critics of "retail loss prevention" - suing shoplifters - are being threatened with writs.

This is a story you won’t have read too much about, for reasons which will become clear. It starts at the turn of the century, when British high street stores began to allow a number of firms to make “civil recovery” demands for the administrative costs of processing shoplifting cases.

This practice is known as retail loss prevention, and it involves suing thieves in the civil courts. It seems reasonable enough - why should a shop or supermarket lose out just because they’ve caught someone committing a crime? Over the years, the industry grew. Citizens Advice reports that, since 1998, over 750,000 people have received letters demanding substantial sums as compensation for alleged shoplifting or employee theft. Civil recovery firms started to move into other areas. Hotel chains began to use them to chase customers who’d violated their non-smoking policy. Private parking firms went after people who’d violated their restrictions.

And over the years, a clear problem began to emerge. People were being pressed for costs despite not being found guilty of any crime. In one case, a young mother whose toddler opened a drink without paying received a bill for £87.50 for “staff and management time, administration and apportioned security costs”. A typical case was Sam’s. Aged 19, he was dismissed from his job with Tesco in July 2008, for the alleged theft of £4 cash from a till. He subsequently received a letter demanding £191.50, broken down as: £4.00 for the value of “the goods or cash stolen”, £112.50 for “staff and management time”, £33.75 for “administration costs”, and £41.25 for “security and surveillance costs”. Despite criticism from a QC and the Citizens Advice Bureau, the companies insisted that there were civil courts “precedents” which support such claims.

The complaints began to stack up on consumer forums, and the BBC's Watchdog ran a short feature. Oddly, whenever consumers stood their ground, the costs claims rarely seemed to be taken any further. According to Citizens Advice, of the more than 600,000 demands seemingly issued since 2000, only four unpaid demands have ever been successfully pursued in the county court by means of a contested trial.

Citizens Advice began to catalogue a steady stream of cases - no coincidence that they coincided with a rise in self-service checkouts. It soon put together one report, then another, showing that many of these cases were the result of consumer errors, and that many who were guilty had mental health problems and were caught taking extremely low value goods. As Denis MacShane MP told Parliament this year: “In essence, 90 per cent of all shoplifting in our stores is organised by gangs. About 8 per cent or 9 per cent is done by in-house stealing. The tiny one per cent is done—frankly, for the most part—by rather sad people.”

Now the story goes in a different direction. It’s about one civil recovery case, involving two girls who were caught shoplifting from a high street retailer. What happened next is, for the time being, detailed on their lawyer’s website: the case went to court, and the retailer’s assertion that its total losses were almost £137.50 was chucked out of court. Under cross-examination, a security manager agreed the incident had taken one hour and ten minutes to deal with - at a cost of £17, not £98.55 as claimed. He was carrying out his job, not distracted from a core function of it.

What’s interesting is what happened next. The retailer’s agent, Retail Loss Prevention (the biggest firm in the business), instructed libel lawyers Schillings to demand the law firm remove the above link from its website. And this wasn’t the only threat issued by Schillings, who also accused a national official of the Citizens Advice Bureau, Richard Dunstan, of "orchestrating" a three-year long "sustained campaign of harassment and defamation" against it and its staff, asking it to remove the two reports linked to above, and sent letters on behalf of Retail Loss Prevention to various websites.

One of them was the law site Legal Beagles. Like the other parties, it refused to accede to Schillings’ demands. Instead, it decided to publish the letter on its site. So far, this is where the story begins and ends. As MacShane said: “This is a £15 million racket used by a lot of major companies—corporate groups — such as Boots, TK Maxx, Primark, Debenhams, Superdrug and Tesco. They are all shops that we use.”

That the media has shied away from a detailed investigation of the industry, most likely for fear of vexatious litigation, is one thing. And no doubt the PR men have helped out too - does this Wikipedia entry strike you as entirely objective? But that the Citizens Advice Bureau should face legal threats merely for doing its job should tell you all about this country’s ludicrous libel laws. No doubt the billionaires who've journeyed here to settle writs over the last few years have pumped a little into our economy whenever they’ve popped into Harrods. The question is exactly how much we’re willing to receive for our freedom of speech.

Are shops over-zealous about thieves? Photo: Getty

Alan White's work has appeared in the Observer, Times, Private Eye, The National and the TLS. As John Heale, he is the author of One Blood: Inside Britain's Gang Culture.

Getty
Show Hide image

David Osland: “Corbyn is actually Labour’s only chance”

The veteran Labour activist on the release of his new pamphlet, How to Select or Reselect Your MP, which lays out the current Labour party rules for reselecting an MP.

Veteran left-wing Labour activist David Osland, a member of the national committee of the Labour Representation Committee and a former news editor of left magazine Tribune, has written a pamphlet intended for Labour members, explaining how the process of selecting Labour MPs works.

Published by Spokesman Books next week (advance copies are available at Nottingham’s Five Leaves bookshop), the short guide, entitled “How to Select or Reselect Your MP”, is entertaining and well-written, and its introduction, which goes into reasoning for selecting a new MP and some strategy, as well as its historical appendix, make it interesting reading even for those who are not members of the Labour party. Although I am a constituency Labour party secretary (writing here in an expressly personal capacity), I am still learning the Party’s complex rulebook; I passed this new guide to a local rules-boffin member, who is an avowed Owen Smith supporter, to evaluate whether its description of procedures is accurate. “It’s actually quite a useful pamphlet,” he said, although he had a few minor quibbles.

Osland, who calls himself a “strong, but not uncritical” Corbyn supporter, carefully admonishes readers not to embark on a campaign of mass deselections, but to get involved and active in their local branches, and to think carefully about Labour’s election fortunes; safe seats might be better candidates for a reselection campaign than Labour marginals. After a weak performance by Owen Smith in last night’s Glasgow debate and a call for Jeremy Corbyn to toughen up against opponents by ex Norwich MP Ian Gibson, an old ally, this pamphlet – named after a 1981 work by ex-Tribune editor Chris Mullin, who would later go on to be a junior minister under Blai – seems incredibly timely.

I spoke to Osland on the telephone yesterday.

Why did you decide to put this pamphlet together now?

I think it’s certainly an idea that’s circulating in the Labour left, after the experience with Corbyn as leader, and the reaction of the right. It’s a debate that people have hinted at; people like Rhea Wolfson have said that we need to be having a conversation about it, and I’d like to kickstart that conversation here.

For me personally it’s been a lifelong fascination – I was politically formed in the early Eighties, when mandatory reselection was Bennite orthodoxy and I’ve never personally altered my belief in that. I accept that the situation has changed, so what the Labour left is calling for at the moment, so I see this as a sensible contribution to the debate.

I wonder why selection and reselection are such an important focus? One could ask, isn’t it better to meet with sitting MPs and see if one can persuade them?

I’m not calling for the “deselect this person, deselect that person” rhetoric that you sometimes see on Twitter; you shouldn’t deselect an MP purely because they disagree with Corbyn, in a fair-minded way, but it’s fair to ask what are guys who are found to be be beating their wives or crossing picket lines doing sitting as our MPs? Where Labour MPs publicly have threatened to leave the party, as some have been doing, perhaps they don’t value their Labour involvement.

So to you it’s very much not a broad tool, but a tool to be used a specific way, such as when an MP has engaged in misconduct?

I think you do have to take it case by case. It would be silly to deselect the lot, as some people argue.

In terms of bringing the party to the left, or reforming party democracy, what role do you think reselection plays?

It’s a basic matter of accountability, isn’t it? People are standing as Labour candidates – they should have the confidence and backing of their constituency parties.

Do you think what it means to be a Labour member has changed since Corbyn?

Of course the Labour party has changed in the past year, as anyone who was around in the Blair, Brown, Miliband era will tell you. It’s a completely transformed party.

Will there be a strong reaction to the release of this pamphlet from Corbyn’s opponents?

Because the main aim is to set out the rules as they stand, I don’t see how there can be – if you want to use the rules, this is how to go about it. I explicitly spelled out that it’s a level playing field – if your Corbyn supporting MP doesn’t meet the expectations of the constituency party, then she or he is just as subject to a challenge.

What do you think of the new spate of suspensions and exclusions of some people who have just joined the party, and of other people, including Ronnie Draper, the General Secretary of the Bakers’ Union, who have been around for many years?

It’s clear that the Labour party machinery is playing hardball in this election, right from the start, with the freeze date and in the way they set up the registered supporters scheme, with the £25 buy in – they’re doing everything they can to influence this election unfairly. Whether they will succeed is an open question – they will if they can get away with it.

I’ve been seeing comments on social media from people who seem quite disheartened on the Corbyn side, who feel that there’s a chance that Smith might win through a war of attrition.

Looks like a Corbyn win to me, but the gerrymandering is so extensive that a Smith win isn’t ruled out.

You’ve been in the party for quite a few years, do you think there are echoes of past events, like the push for Bennite candidates and the takeover from Foot by Kinnock?

I was around last time – it was dirty and nasty at times. Despite the narrative being put out by the Labour right that it was all about Militant bully boys and intimidation by the left, my experience as a young Bennite in Tower Hamlets Labour Party, a very old traditional right wing Labour party, the intimidation was going the other way. It was an ugly time – physical threats, people shaping up to each other at meetings. It was nasty. Its nasty in a different way now, in a social media way. Can you compare the two? Some foul things happened in that time – perhaps worse in terms of physical intimidation – but you didn’t have the social media.

There are people who say the Labour Party is poised for a split – here in Plymouth (where we don’t have a Labour MP), I’m seeing comments from both sides that emphasise that after this leadership election we need to unite to fight the Tories. What do you think will happen?

I really hope a split can be avoided, but we’re a long way down the road towards a split. The sheer extent of the bad blood – the fact that the right have been openly talking about it – a number of newspaper articles about them lining up backing from wealthy donors, operating separately as a parliamentary group, then they pretend that butter wouldn’t melt in their mouths, and that they’re not talking about a split. Of course they are. Can we stop the kamikazes from doing what they’re plotting to do? I don’t know, I hope so.

How would we stop them?

We can’t, can we? If they have the financial backing, if they lose this leadership contest, there’s no doubt that some will try. I’m old enough to remember the launch of the SDP, let’s not rule it out happening again.

We’ve talked mostly about the membership. But is Corbynism a strategy to win elections?

With the new electoral registration rules already introduced, the coming boundary changes, and the loss of Scotland thanks to decades of New Labour neglect, it will be uphill struggle for Labour to win in 2020 or whenever the next election is, under any leadership.

I still think Corbyn is Labour’s best chance. Any form of continuity leadership from the past would see the Midlands and north fall to Ukip in the same way Scotland fell to the SNP. Corbyn is actually Labour’s only chance.

Margaret Corvid is a writer, activist and professional dominatrix living in the south west.