A relative of mine got caught shoplifting from a zellers store
In manitoba

Stupid kid - $3 item

No police involvement
Was let go with a stern warning

Was sent a letter from zellers corp
Banned from the store for 2 years

Then a few weeks later sent another letter

They wanted the kid to pay a $500.00 fine

Not through the court system
This was just from zellers

Can they do this?
Do they have any legal standing ?

Can they file charges via the police if they do not pay the fine?

Wht did he sign or agree to when he was first stopped? Did he agree to pay restitution? That is "usually" the way it works. The choice is be arrested or pay restitution.

I would think this may very well be a $500 learning experience.