Mystery Shopping in Nevada

As Found in the Nevada Statutes-
(Below you will find a further explanation of this regulation)

NRS 648.012 “Private investigator” defined. “Private investigator” means any person who for any consideration engages in business or accepts employment to furnish, or agrees to make or makes any investigation for the purpose of obtaining, information with reference to:

1. The identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputation or character of any person;

2. The location, disposition or recovery of lost or stolen property;

3. The cause or responsibility for fires, libels, losses, accidents or damage or injury to persons or to property;

4. Securing evidence to be used before any court, board, officer or investigating committee; or

5. The prevention, detection and removal of surreptitiously installed devices for eavesdropping or observation.

(Added to NRS by 1967, 1363; A 1985, 1333)

Based on the above regulation we are providing this explanation based on the opinion of the Nevada Attorney General’s Office. As with all laws, interpretation is key to full understanding. We hope our explanation assists you in gaining that understanding.

It has been determined by an opinion from the Nevada Attorney General’s Office on May 11, 1993, that mystery shopping services are activities which fall within the definition of a private investigator, and would therefore require an individual or business to be licensed as such before performing any services as a mystery shopper in Nevada.

Nevada Revised Statute (NRS) 648.012 defines a private investigator as “any person who for any consideration engages in business or accepts employment to furnish, or agrees to make any investigation for the purpose of obtaining information with reference to:

1. The identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputation or character of any person….”

NRS 648.165 details the fines for unlicensed activity as $2,500 for the 1st offense, $5,000 for the 2nd offense, and $10,000 for the third and subsequent violations.

As a result of the above statute, the Private Investigators Licensing Board, the regulatory agency tasked with licensing and monitoring private investigators, has establish the following guidelines for conduction mystery shopping in Nevada:

People who conduct mystery shopping must be employees of a licensed private investigator (no independent contractors). The private investigative company is required to assume all the cost associated with the hiring process and do all appropriate state and federal withholding.

People who conduct mystery shopping must obtain a work permit from the sheriff of the county in which they work. There are $90 in fees associated with this process as well as several hours of the shoppers time in the application and fingerprinting process. These cost must be paid by the shopper, but the permit is good for 5 years. (Some remote counties do not have the work permit requirement). These monies are paid directly to police agencies for work cards and fingerprint analysis. They are not paid to the PI firms.

People who conduct mystery shopping must be registered with the private investigators licensing board as an employee of the PI company and are authorized to conduct mystery shopping for that company only. There is a one time $10 registration fee which is paid by the Private Investigative firm.