My wife worked in some retail places in highschool and shortly after too. That was the policy as well. The clothing store in the mall she worked at, they would watch them steal stuff and could not confront them. Just call mall security. And even then, mall security couldn’t approach them unless THEY watched them too. Then it was even an issue with detaining the perp until real cops showed up. She never saw the entire thing actually take someone away in the back of a car.
Logically the policy is to protect the store, from the employee being injured or worse and turning around and saying “Well I was just trying to do what I felt was right” and suing them. Which I can totally see. But that would really only apply IF someone was hurt sticking up for their place of employment, for their friends or family, or just for humanity’s sake… ANNND wanted to sue them after the fact. BUT just make the policy in such a way that it allows someone to make a moral conscious decision prior to taking actions in their own hands, and put all responsibility in that persons hands.
Cover both asses.