Stores could be forced to eliminate self-checkout counters in California under proposed new rules.
A new bill that state lawmakers are considering Monday would prohibit grocery stores and pharmacies from using the kiosks unless they meet a set of strict criteria.
The proposal, which is supported by the UFCW union, comes amid a huge backlash over large-scale theft, fed-up customers who hate using the machines and staff fearful of losing their jobs.
If the bill passes, stores would have to ensure that automatic checkouts are only used by customers who purchase ten items or fewer.
There would also need to be at least one staffed cash register available as an alternative.
Some major retailers have taken steps this year to reverse the failed self-checkout experiment. The machines were designed to reduce labor costs, but led to an increase in theft.
Self-checkout machines are especially vulnerable to theft, as thieves cannot scan the items or scan the cheaper items.
Store employees would not have to supervise more than two self-checkout machines at a time and would not have other responsibilities simultaneously.
Additionally, under the new rules, the sale of certain items through self-checkout would be completely prohibited.
Stores that use artificial intelligence would also have to complete an assessment before being able to use the technology for security or transaction purposes.
Senate Bill 1446 – proposed by Sen. Lola Smallwood-Cuevas, D-Los Angeles – will be heard by the California Senate Appropriations Committee.
“While it is crucial to adapt these new technologies, we must protect jobs and ensure worker safety,” Smallwood-Cuevas told the Sacramento Bee.
Self-checkout machines were introduced to reduce labor costs and supposedly optimize customers’ shopping experience, but in reality the technology is vulnerable to theft.
As a result, large chains have already begun to move away from self-checkout systems.
Walmart has been removing self-checkout machines from its stores in recent months in a bid to improve the “in-store experience” for customers and reduce losses from theft.
At two stores, in Shrewsbury, Missouri, and Cleveland, Ohio, the retailer said it would replace kiosks with staffed checkout lanes that will “give our associates the opportunity to provide more personalized and efficient service.”
Other stores, including Target, are already implementing restrictions on self-checkout and returning to more manual checkout lanes.
Dollar General is among retailers that have announced sweeping changes to automated checkouts at stores across the US.
At two stores, in Missouri and Ohio, Walmart will completely replace self-checkout machines with “traditional” staffed lanes, as shown in the image.
Target is rolling out new scanners to combat theft at its self-checkout machines, which will roll out to all stores by the end of the year.
Franchise owner Scott Savage has removed all self-checkout lanes at his Giant Tiger discount store in Stratford, Ontario (pictured: a store in Ottawa).
The company has said the changes would help reduce “shrinkage,” the retail industry term for merchandise losses due to theft, damaged items and clerical errors.
“Most of the reduction in self-checkout systems is due to retailers’ concerns about theft,” Neil Saunders, CEO of GlobalData, told DailyMail.com earlier this year.
‘Theft rates at self-checkouts are reasonably high due to both deliberate actions and accidental errors. Forcing more customers to use staffed checkouts solves many of these problems and saves retailers money,” Saunders explained.
Dollar General also announced earlier this year that it was completely removing self-checkout kiosks from 300 of its stores with the highest levels of shoplifting and unscanned items.
“Most of the decline in self-checkout systems is due to retailers’ concerns about theft,” said Neil Saunders, CEO of GlobalData.
The discount chain said it would convert some of its self-checkouts to regular checkouts at 9,000 of its locations and would limit self-checkout purchases to five items or fewer at another 4,500 stores.
“We believe these actions have the potential to have a material, positive impact on shrink,” Dollar General CEO Todd Vasos said as part of the announcement.
Franchise owner Scott Savage has eliminated all self-checkout lines at his Giant Tiger discount store in Stratford, Ontario.
Instead of theft problems, he told CBC he made the change because many of his older customers don’t like using the machines.
“The biggest complaint you have out of everyone is, ‘I don’t get paid to work here,'” Savage said.
“They would stand in line at my regular cash registers and just prefer that service.”
Several customers told the Canadian outlet they were happy with the decision to get rid of automated checkout counters at the discount retailer, which sells home goods, clothing and groceries.
“I like the person-to-person contact,” Leslie Clayton-Winget said. “You can’t tell a machine, ‘Have a nice day.'”
