Retailers and defamation claims by alleged shoplifters
Commercial
Retailers and defamation claims by alleged shoplifters
Retailers and other businesses interacting with the public are experiencing a significant increase in shoplifting and theft by customers. However, this brings a heightened risk of a staff member mistakenly accusing someone of shoplifting – resulting in an allegation of defamation.
Businesses need to consider the risk of a costly legal claim if they publicly accuse someone of theft. It is encouraging that in Ireland, businesses have been given a new statutory retail defamation defence against allegations under the Defamation (Amendment) Act 2026; and abusive legal action will also be stamped out.
Whether this may be reciprocated in the UK remains to be seen. Shops and other consumer-facing businesses would certainly welcome such a development; but for now, they need to understand how the existing defamation framework can protect them if they are accused of defaming someone.
Latest figures
According to the British Retail Consortium, 5.5m incidents of shoplifting took place in 2025 – a record high - costing the industry some £400m. And in the same year, police recorded up to 530,643 shoplifting offences across England and Wales. Yet the problem is both underreported; and there are widespread concerns that the authorities are not taking the problem seriously.
It means business staff are increasingly taking matters into their own hands, including challenging suspected shoplifters. In 2023, for example, a solicitor sued supermarket giant Sainsbury’s for slander after a security guard accused him of shoplifting in front of customers (the case was eventually stayed for reasons not, apparently, disclosed).
Also, many larger retailers benefit hugely from advances in facial recognition technology to detect shoplifters. However, there have been several cases of ‘false positives’, resulting in customers wrongly accused of theft.
Theft and defamation
Whether or not accusations of shoplifting have merit, they expose retailers to the risk of claims under the Defamation Act.
Defamation occurs when someone makes a statement, published to others, about someone that damages their reputation in the eyes of a reasonable member of the public. Slander (a type of defamation) arises where the words are spoken rather than unwritten.
The risk of defamation and slander is usually associated with media publications, social media and podcasts; but a person openly accused by staff members of shoplifting or theft in public may also be defamed. The reputational damage to someone falsely accused can be significant, not to mention distressing and embarrassing.
However, businesses can defend a claim in certain circumstances, eg the accusation is true; it was their honest opinion that the person had stolen; and on the basis of qualified privilege (ie the words were said in good faith and without malice).
Even so, the cost to a business of engaging with legal proceedings following accusations of defamation can be financially and reputationally damaging.
What does this mean?
Retailers and other businesses interacting with members of the public are increasingly concerned about the scale of customer theft. They should make sure staff are trained in what action is appropriate if they see or suspect someone of shoplifting – particularly where other people are within hearing distance.
They should also be trained when relying on technology to help identify shoplifters, understanding the risk of error involved.
It is also worth checking your business insurance covers the costs of legal action if a defamation claim is made against you. Should a claim arise, always take specialist advice from expert solicitors.
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