Chop shops are illegal automobile garages that buy stolen cars, disassemble them, and sell the individual parts for a profit. Chop shops often disassemble a car within hours of purchasing it from the thief who stole it—making it difficult for the police and the rightful owner to find the stolen vehicle. Chop shops are often operated in residential garages and small commercial spaces to avoid detection, but are usually part of a large criminal network or organization.

It is a crime under federal law (18 U.S.C. § 2322) to knowingly own, operate, maintain, or control a chop shop. There are significant fines and penalties under federal law for operating a chop shop—up to 15 years imprisonment for a first conviction, with the maximum fine and imprisonment doubled for any subsequent conviction.

States also have criminal laws (located in the penal or criminal code or statutes) that prohibit the operation of a chop shop. An offender may be prosecuted under state chop shop laws in addition to a federal prosecution, or instead of a federal prosecution.

In Washington State, operating a 'chop shop' is illegal under both federal and state laws. Federally, 18 U.S.C. § 2322 criminalizes the knowing ownership, operation, maintenance, or control of a chop shop, with penalties of up to 15 years imprisonment for a first conviction and potential doubling of fines and imprisonment for subsequent convictions. In Washington, state statutes specifically address the issue of chop shops under RCW 46.80.020, which defines and prohibits activities associated with chop shops, such as acquiring and disassembling vehicles known to be stolen for the purpose of selling parts. Violations of this statute can lead to serious criminal charges, with penalties that may include imprisonment, fines, or both. These state-level penalties are in addition to any federal consequences an offender might face. The dual system of state and federal laws means that individuals involved in chop shop operations can be prosecuted under state law, federal law, or both, depending on the circumstances of the case.