New regulations aim to crackdown on secondhand market for stolen cell phones

Used phones stacked on top of each other.
Photo credit Getty Images Stock

CHICAGO (WBBM NEWSRADIO) -- Chicago has upped the penalties for dealing in stolen phones.

Street robberies often involve phones and now pawn shops and second-hand dealers face potential license revocation if they’re caught selling stolen devices.

Mayor Lightfoot, along with the Chicago Department of Business Affairs (BACP) Commissioner Kenneth Meyer announced Wednesday the Chicago City Council approval to enhance regulation of secondhand dealers and pawnbrokers to further protect against the purchase and sale of stolen cellphones.

"This ordinance will allow us to further protect our residents and their property," said Mayor Lightfoot, in a statement. "While retailers continue to do everything in their power to prevent theft, we will supplement their efforts with strengthened regulations designed to curb the offense of dealing in stolen cellphones and prevent the repetition of these violations. I'm grateful for the ordinance's passage, which will deepen our city's public safety efforts."

Fines have been increased to $2,000 to $10,000 per violation. The range before was $1,000 to $2,000.

Additionally, two or more violations within a 24-month period will now result in license revocation.

Commissioner of the Department of Business Affairs and Consumer Protection Kenneth Meyer said in a statement, “Cell phone robberies and the subsequent resale of those stolen phones are a serious threat to public safety."

He said the stronger regulations will help efforts to stop businesses that are cashing in on stolen phones.

Since 2017 and through the end of 2020, BACP has conducted nearly 500 investigations of this industry, and found there to be a high rate of compliance among secondhand and pawnbroker businesses.

Featured Image Photo Credit: Getty Images Stock