Retail fraud is Michigan's name for shoplifting. It has three degrees, set mainly by the store price of the goods: third degree under $200, second degree from $200 to under $1,000, and first degree at $1,000 or more. Third and second degree are misdemeanors. First degree is a felony punishable by up to 5 years in prison.
This guide reflects the Michigan Compiled Laws as of October 2026. Laws change, so check the current statute or ask a Michigan criminal defense attorney or public defender about your case.
What counts as retail fraud in Michigan
Michigan's retail fraud statutes, MCL 750.356c and MCL 750.356d, cover three kinds of conduct in a store or its immediate vicinity:
- Stealing goods offered for sale while the store is open to the public.
- Changing or hiding a price: altering, moving, replacing or concealing a price, intending to pay less or nothing.
- Refund or exchange fraud: trying to get money or goods back for store property that was never paid for.
For theft and refund fraud, the degree depends on the price of the goods. For a changed price, it depends on the difference between the real price and the price you tried to pay.
First, second and third degree retail fraud
As of 2026, the degrees and maximum penalties are:
- Third degree: under $200. A misdemeanor punishable by up to 93 days in jail, a fine of up to $500 or 3 times the value (whichever is greater), or both.
- Second degree: $200 to under $1,000, or third-degree conduct with a prior conviction (some local ordinance convictions count). A misdemeanor punishable by up to 1 year in jail, a fine of up to $2,000 or 3 times the value, or both.
- First degree: $1,000 or more, or second-degree conduct with one or more listed prior convictions. A felony punishable by up to 5 years in prison, a fine of up to $10,000 or 3 times the value, or both.
Separate incidents that are part of a scheme or course of conduct within any 12-month period can be added together, which can push a charge into a higher degree.
Michigan's general larceny statute, MCL 750.356, uses the same $200 and $1,000 lines, plus a higher tier for property worth $20,000 or more.
Is retail fraud a felony in Michigan?
Only first-degree retail fraud is a felony: goods priced at $1,000 or more, or second-degree conduct by someone with a listed prior conviction. Second and third-degree retail fraud are misdemeanors. Our guide towhen shoplifting is a felony compares other states.
Retail fraud civil demand letters
Separately from the criminal case, MCL 600.2953 lets a store seek civil damages:
- The full retail price of goods that were not recovered or can no longer be sold.
- Civil damages of 10 times the retail price, but not less than $50 and not more than $200.
- Paying within 30 days after the written demand is mailed ends any further civil liability.
- If the demand is ignored and the store sues, it can also recover court costs, including reasonable attorney fees.
- A store can recover only if a formal police report was filed, and the statute sets the exact wording the demand letter must use.
Paying a civil demand does not end the criminal case. Read our guide to shoplifting civil demand letters, and talk to an attorney before paying or responding.
First-offense options: HYTA and delayed sentences
The Holmes Youthful Trainee Act (HYTA) covers offenses committed on or after a person's 18th birthday and before their 26th. It requires a guilty plea, and people aged 21 to 25 need the prosecutor's consent. Retail fraud is not on the list of excluded offenses.
For an offense punishable by 1 year or less, the court places the person on probation for up to 2 years. Completed trainee status is not a conviction for a crime, and the court records are closed to public inspection.
A court can also delay sentencing for up to 1 year under MCL 771.1. The statute does not promise a dismissal or a reduced charge at the end; what happens then depends on the court and the agreement in your case.
Do you have to take a theft class in Michigan?
No Michigan statute requires a class for every retail fraud case, but judges and prosecutors may make a theft or shoplifting class a condition of probation, HYTA or a delayed sentence. Your court order or probation officer sets the class and the hours. Before you enroll, confirm that a self-paced online class meets the requirement. Our Michigan theft class page lists the options, and our guide to court ordered shoplifting classes online explains how they work.