Wal-Mart flunks price accuracy tests, pays $1 million settlement
Filed under: Shopping, Buyer Beware
For five years, state inspectors in Arizona went into Wal-Mart stores to check whether the prices paid at the register matched the price they were supposed to be sold for. The results weren't pretty: Wal-Mart flunked more than half of the 976 inspections.""In today's tough economy, consumers need accurate price information to comparison shop and decide what to buy with their hard-earned money," Arizona Attorney General Terry Goddard said in a statement.
Faced with the ongoing issue of inaccurate pricing in Arizona, that state's attorney general sued the retail giant in 2006, alleging consumer fraud. Wal-Mart settled the suit this month, agreeing to pay $1 million (on top of more than $450,000 in fines already paid) and subjected 40 of its 92 Arizona stores to rigorous independent monitoring for three years. Every store that fails inspection will lead to a $2,500 fine. A failed re-inspection will cost the company $5,000. To pass inspection, at least 98 of every 100 items scanned must ring up at the correct price.
In addition to scanning inaccuracies, Arizona inspectors cited Wal-Mart for numerous instances of not posting prices -- giving consumers no way to know what certain items cost until they went to the register.
"Every day, customers rely on Wal-Mart to help them save money. Accurate pricing is an important part of that commitment," Wal-Mart spokeswoman Delia Garcia said. "We strive for 100 percent price accuracy, and when we do find a discrepancy, we are committed to making it right for our customer. This has long been our practice, and today we are taking this commitment a step further.
"We have already begun to implement measures from this agreement, such as improved training and rigorous internal inspections. We are seeing a reduction in discrepancies. The addition of an independent monitor to this process will further ensure that inspections are conducted fairly and objectively and most importantly reassure our valued customers that the price they see on the shelf is the price they pay at the register."
Still, the situation in Arizona mirrors what happened in several other states, including California -- raising the question of what's going on in states that are less aggressive in monitoring scanner accuracy.
California consumers learned they had the price accuracy problem in 2005. In November, California officials settled a case against Wal-Mart for $1.4 million and the pledge to give consumers $3 off the item at the register for each inaccurately scanned product. California's attorney general said scanner error were found in 164 Wal-Mart stores in that state Those overcharged paid an average of $8.40 too much.
"Consumers saw one price in the aisles, but were charged a higher price at the cash register," California Attorney General Edmund G. Brown Jr. said at the time.
It faces an uphill battle. In 2005, researchers at the University of California at Berkeley and the University of Illinois Chicago Center for Urban Development revealed they found 87% of California stores visited failed price accuracy tests and 85% of those in Illinois, Michigan and Indiana also flunked. Both studies found that when customers paid too much the mean price discrepancy was more than $1 per item.



Reader Comments (Page 1 of 1)
5-30-2009 @ 12:27AM
J said...
It's about time... how many YEARS has walmart done the same thing in stores all over the country??
Wow... wish I had all that money back .
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5-29-2009 @ 11:14PM
TERRI-USA said...
Indeed those low low prices are a deceit, Wal-Mart knew what they were doing now it got caught up with them. wal-mart is as coorupt as the very country that they have there things made in, red China, they mistreat there employees, now the customers, what is next?
You are not saving money and you are not living better.
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5-30-2009 @ 12:43AM
Kent said...
I have found the same problem in Nevada. Product was listed for $4 on the counter and rang up for $7.95.
I was told the person was working on that section and that was the reason for the difference.
But it has happened several times and when pushed, they will not honor the price.
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5-30-2009 @ 10:11AM
Shawna said...
WOW! I cant tell you how many times I have cought them ringing stuff up wrong.....wish i would of kept atleast some of the reciepts. so much money I have lost! And they say where we are they cater to military! what a joke!!!!
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5-30-2009 @ 10:07AM
Deb Wish said...
I do not shop at walmart anymore because of this. I have had issues with the pricing and asked to see a manager because the cashier just shrugs and doesn't care. Managers are rude. I called walmart corp. and told them, they said they would return call with resolution. NEVER HEARD FROM THEM. As a corporation they do not care about the individual customer, just the dollar they can suck from us. SHOP ANYWHERE ELSE!!
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5-30-2009 @ 3:42PM
Barbara said...
Walmart isn`t the only one to overcharge. We have found alot of mistakes at the super market. The key is to check your receipt. I bet we would be surprised how many just pay and don`t check for over charges.
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5-30-2009 @ 4:13PM
william said...
Brentwood,Ca. 94513. We appreciate Wal-Marts pricing keeping some big supermarket chains in this Country, you know who you are, from monopolizing food costs to rediculous prices and price gouging the public. A lot of heartlessness going on in the name of high profits and making the average working person struggle to survive more so than they should have too. About Wal-Mart, while helping keep these Big Food Chains "in check" they are "without a doubt" Guilty of this inaccuracy scanning practice. There denial by there highly paid lawyers cannot hide this fact. While I like Wal-Mart, we, the public, do not always check our Reciepts on charges. I did question a charge while my groceries were being rung up and the checker brought management into the picture. The assistant manager swore to computer price accuracy even though I personally took him to the shelf where I picked up the product and showed him the price tag in front of the product. The Tag "matched" the product with the written inscription on the tag verifying this. The Assistent Manager still stuck to his guns and said the computer was right and that I was mis-reading the price tag label in front of the product. Needless to say, I did have the opportunity to deny the purchase at the register at that time, the product was there brand of gallon bottled spring water--- I had purchased 15-- and the overcharge was not substantial, a matter of a few dollars, but still this was a ethics issue and intentionally overcharging customers well deserves a corporate slap in the hand with a big financial fine. It should happen more often to Wal-Mart for they are deserving of deliberate + non-deliberate inaccuracies. The non-deliberate inaccuries are just human error and understandable, I have no problem with this, but the intentional ones deserve nice big financial corporate fines slappings. Folks, while Wal-Mart can claim my writings here are my word against there's on who is telling the truth or not here, I just wanted to let you know that I, the person writing this, am a 33 year mostly full-time Retired Grocery Food/Stock Clerk who has spent the majority of my life working for two Major Food Market Chains. I am a professional at my work and take pride in it and try to be the best I can be at whatever I do for a living. I can "Read" shelf tag labels and even if the products label has abbreiations on them. The Assistant Manager was without a doubt knowingly "wrong" and covering up Wal-Marts practices( A deliberate inaccuracy) but I let Wal-Mart keep the two bucks for It was a inconvienence to have to go somewhere else for the product because of a difference of opinion. I still like and frequently shop at Wal-Mart but I urge all who shop there to check there purchase reciepts and watch the ring-ups of your items as they are Scanned for Wal-Mart is an offender in deliberate and non-deliberate Scanning Inaccuracies and regardless of where the penalty monies go too-- as long as Wal-Mart does not get to keep it, the "Fines of Scanning Inaccuracies" should keep on coming! Good job Investigators! You are earning your salaries. Sincerely, Wm. S.
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5-30-2009 @ 5:01PM
sherry said...
The retail store I work for if it is marked different than the computer we honor the marked price. It is our fault it is marked wrong not the customers. Walmart has changed a lot since the founders children have taken over, it is all about the money now not the customer.
They need to remember that without the customer they are screwed. ITS CALLED CUSTOMER SERVICE!!!!!!
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5-30-2009 @ 5:52PM
mitchell said...
I work for Wal Mart in arizona. The wrong price labels are the responsibility of the merchadise supervisor of each department. Each department has a supervisor. IE dairy,meat,produce,bakery,deli.grocery,cosmetics,soft-line(clothes),sporting goods,etc. Corporate will give the supervisor price changes daily, and most of the time the supervisor will change the price but will not make the new label to replace the old label. Its just laziness among the supervisors. I dont blame customers that are mad. I too shop at wal mart and it tees me off with all the wrong prices. Hiring a outside company to check prices is a waste of wal mart money. Wal mart should hold thier supervisors accountable for thier actions. Wal Mart is also hiring 5+ inside associates to check prices along with the outside company. The missing labels though are more than likely people taken them off. Everyday I see little kids rip them while thier parents just laugh. Associates dont take down labels for the heck of it, its usually a customer. Or a new product comes in at night time, the stockers put it up, and the daytime supervisor does not tag (make label) for it.
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5-30-2009 @ 8:33PM
Margie said...
This is how Walmart makes alot of their money this goes on all over the usa, not just Arizonia, we have it Maryland, Delaware and PA.
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6-10-2009 @ 5:18PM
Von said...
I have worked for Walmarts' Sister store SAM'S CLUB for many years. I have been in and out of all of the stores management levels. This is a constant and much talked about problem. Every week we are required to price all our items and change prices accordingly. This is so easy to do that it really is a no brainer... This is the least WE can do for the people who trust us enough to come to our SAM"S CLUB... Come on Walmart stop it now, Because the World is watching...
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5-31-2009 @ 9:54AM
dinolint said...
I paid $68.75 for a package of italian sausage at Albertsons in Moreno Valley, CA. They said "woops." They gave it to me for free after i told them I would call weights and measures. Funny thing was I had to stand in line at the service desk for twenty minutes while they straightened this out! Customer Service is an oxymoron!
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5-31-2009 @ 5:52AM
Steve said...
Are you friggin' KIDDING ME....? A one million dollar fine??? That's LAUGHABLE for a company like WalMart, who has ripped you off FROM DAY ONE on countless items and under countless incidents. The WHOLE of the WalMarts in the world (huge corporations) are only trying to make you think that you, the consumer, is getting a better deal... you can't even FATHOM the effect that their greed has had on the working class of this country (and others, for that matter). The lost jobs and lost wages are INCALCULABLE.
If they've gotten away with price fixing and price gouging, imagine how much money they've made on this practice before SOMEONE EVEN LOOKED AT IT.... We all believe that what we're paying at the register is what we saw on the shelf. How many more millions have they made compared to the ONE million they're fined? What a joke!! They do this purposely because even if they're caught, they've still made off like the bandits that they are! Doesn't anybody realize this?
And all the sheep still shop there.... unbelievable.
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5-31-2009 @ 10:54PM
Mich Mom said...
In Michigan the law states a customer is entitled to"
If an automatic checkout system (scanner) charges you more than the marked price of an item, and:
1) the transaction has been completed, and
2) you have a receipt indicating the item purchased and the price charged for it.
Then:
You must notify the seller that you were overcharged, within 30 days of the transaction, either in person or in writing. Within two days of receiving your notice, the seller may choose to refund you the difference between the amount charged and the price marked plus a "bonus" of ten times the difference, with a minimum of $1.00 and a maximum of $5.00. If the seller refuses to give you both the refund and the bonus, you may bring a lawsuit to recover your actual damages or $250.00, whichever is greater, plus reasonable attorney fees up to $300.00.
I try hard not to shop Walmart. But when I do I always check my receipt before I leave the store. 4 out of 5 times I make money on the trip!!
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7-14-2009 @ 3:19PM
Rachel said...
Just got home from Wal-Mart in Latrobe, PA. Like alot of other people in this bad economy is currently on foodstamps. So I went in to get my order. Bought a 4-pack of the Starbucks cold coffee drink Frapuccino, it was marked $5,95 (expensive enough). Checked out, gave the woman my card and she said I still owed $10. I asked her why as I was certain I hadn't bought anything that wasn't a food item. She said it was the Frapuccino... so I asked well, what else was there? She said nothing, the Frapuccino's $9 something plus tax. I argued with her, telling her that they are $5.95. She called a CSM who went back and checked and agreed. Then I got to thinking, these are DRINKS, same as pop, coffee, etc. and should be non-taxable (and allowed for purchase by food stamps), and I've paid for these atleast 10 other places by food stamps. So I told them all of this and they got VERY RUDE, telling me never to pull this shit again! Those were their EXACT words. I was so mad I left, went to Sheetz and Shop N' Save and purchased Frapuccinos there with food stamps, taking the reciepts back to Wal-Mart, showing a different woman and asking her why (the same guy wouldn't come out, chicken shit). God, I seriously hate Wal-Mart. What really gets me is they not only treat their customers poorly but their employees; the same employees who turn around and will defend their beloved Wal-Mart to the death. I feel like I was looked down upon for using food stamps, me, college educated, out of work, and down on my luck. All I know is these people at Wal-mart better start treating people a little better, or they'll be standing behind me using THEIR food stamps someday.
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7-14-2009 @ 3:19PM
Rachel said...
Me again, just looked over my reciept and was overcharged for my melon too!
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