Wal-Mart has agreed to pay a US$1.4m penalty after an investigation by Californian authorities found evidence of price-scanning errors.
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The company has also vowed to give customers $3 back when pricing mistakes are found at the cash register.
The California Attorney General’s office began its investigation in December 2005, following up on allegations that Wal-Mart stores in California were scanning items at prices higher than those advertised on store shelves and signs.
Using random price-checking, state authorities found that 164 Wal-Mart stores in 30 counties had made scanning errors. On average, customers who were overcharged paid an extra $8.40 at the checkout, a statement by the California Attorney General said.
Among the investigation’s findings were customers being overcharged $1 on Kellogg’s Special K cereal in Los Angeles and Santa Clara Counties, and by 46 cents on Kellogg’s Rice Krispies cereal in Madera, King and Ventura Counties, in March and April 2006.
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By GlobalData“We found price-scanning errors in Wal-Mart stores across California,” California Attorney General Edmund G Brown Jr said. “Consumers saw one price in the aisles, but were charged a higher price at the cash register. With this agreement, Wal-Mart will give customers $3 back when pricing mistakes are found at the cash register. In these tough times, this will help consumers as the holiday season approaches.”
Wal-Mart’s $1.4m fine includes restitution, civil penalties and reimbursement for investigative costs, and it will also pay $50,000 to the State Consumer Protection Prosecution Trust Fund.
As part of the settlement, Wal-Mart also agreed to implement a pricing accuracy programme in California for at least four years.
A spokesperson for Wal-Mart said today (25 November): “We always strive for 100% pricing accuracy. If we do find pricing discrepancies, we’re committed to making it right for our customers, and are initiating additional practices to do just that.”
