North Carolina – Automated Sales Suppression Devices

SALT Report 2761 – The North Carolina General Assembly passed a Bill regarding the possession, transfer, or use of automated sales suppression devices.  Effective December 1, 2013, any person who is convicted of selling, purchasing, installing, transferring, possessing, using, or accessing any automated sales suppression device, zapper, or phantom-ware is guilty of a Class H felony and will be subject to a fine of up to $10,000.

Additionally, any person found in violation will be held liable for all taxes, fees, penalties, and interest due as a result of the use of an automated sales suppression device, zapper, or phantom-ware.  Further, the violator will be required to forfeit all profits associated with the sale or use of these devices.

Automated sales suppression devices and zappers are defined as software programs that falsify the electronic records of an electronic cash register or other point-of-sale system.  This includes transaction data, transaction reports, software programs, any device that carries the software program, or an Internet link to the software program.

Phantom-ware is defined as a hidden programming option embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that can be used to create a second set of records or to eliminate or manipulate transaction records, which may or may not be preserved in digital formats, to represent the true or manipulated record of transactions in the electronic cash register.

For Further Information

North Carolina General Assembly – Senate Bill 465, Laws 2013