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 Georgia, operating a 'chop shop' is a criminal offense under state law, in addition to being a federal crime. Under Georgia Code § 16-8-80, it is illegal to alter, disassemble, or dismantle a motor vehicle when one knows or should know that the vehicle is stolen. This statute specifically targets the operations of chop shops by making it unlawful to possess, receive, transfer, or sell any vehicle or vehicle part with knowledge that the identification number has been altered to conceal the identity of the vehicle. Penalties for operating a chop shop in Georgia can include imprisonment, fines, and forfeiture of property used in or derived from the illegal activity. These state-level penalties are separate from the federal penalties outlined in 18 U.S.C. § 2322, which can impose up to 15 years of imprisonment for a first conviction and enhanced penalties for subsequent convictions. Offenders may face prosecution under both state and federal laws, which can result in cumulative punishments.