I thought it was unrealistic that merchants could tell whether or not something was stolen, so I went into the CS and made every merchant's responsibility 29, so they would by stolen stuff. Unfortunately, this creates two minor problems. First, if a merchant needs an item and doesn't have it they will steal it. I don't think this will be a major problem, though I could be wrong. If you find a merchant has died from stealing and think it's this mod, you can just open the console, click on them, and type "resurrect" without the quotes to bring them back to life. Secondly, the merchants who formerly had 100 responsibility will no longer automatically raise your bounty. If an NPC's responsibility is set to 100, and they see you stealing or committing some other crime, they will automatically raise your bounty without telling a guard. I think this is also unrealistic, and don't mind having it gone.

Note: I did not edit the fence's responisbility, as they are already below 30. Also, be warned that selling stolen items to normal merchants will still count towards the record the game keeps of the stolen items you have sold, which will affect things like the thieves guild quests.

Conflicts: The only conflicts should be with mods that alter any of the merchant NPCs. If you use a mod like this, but still want the effect, open the mod up in the CS, navigate to the NPC tree, sort by class, and change the 'Responsibility' setting in the 'AI' submenu of the NPC edit box to 29.