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Wal-Mart Pays $1.4 Million to California for Overcharging

Here at Wake Up Wal-Mart, we love to hear from our activists and from regular Wal-Mart customers. We frequently get e-mails from folks asking to hear more about our campaign, or wanting to know what they can do about specific topics. We also get quite a few complaints about Wal-Mart, as you woud imagine. One frequent complaint we've received is pricing mistakes, overpricing, and pricing difference from area to area. Today, we saw this story from Reuters and it backed up what we've been hearing.


Wal-Mart settle Calif. pricing suit for $1.4 mln

Wal-Mart Stores Inc agreed to pay $1.4 million and refund $3 per customer for future pricing mistakes to settle a lawsuit by California authorities over price scanning errors at the chain's stores statewide, the California Attorney General said on Monday.

An investigation into allegations that Wal-Mart checkout counters were scanning items at higher prices than those advertised on store shelves and signs began in 2005, followed by a lawsuit filed earlier this year in San Diego.

Through random price checks, state investigators found that 164 Wal-Mart stores in 30 California counties had made scanning errors, which averaged $8.40 per customer, according to California Attorney General Edmund Brown and San Diego District Attorney Bonnie Dumanis.

The investigators found that customers were overcharged on a variety of items, ranging from sports bras to cereal.

"Wal-Mart always strives for 100 percent pricing accuracy," Wal-Mart spokesman Greg Rossiter said. "If we do find pricing discrepancies, we're committed to making it right for our customers, and we are instituting additional measures to do just that."

As part of the settlement, Wal-Mart agreed to implement a pricing accuracy program in its California stores for at least four years. The chain must designate employees to handle consumer complaints and do weekly price accuracy checks.

The company also must post signs describing the refund program at each cashier's stand and offer immediate discounts of $3 for every item that is priced incorrectly.

If the accurate price is less than $3, the overcharged customer will receive it for free, the attorney general said.

Wal-Mart has agreed to pay $1.4 million in restitution, civil penalties and reimbursement for the cost of the probe, plus $50,000 to the state Consumer Protection Prosecution Trust Fund.

Posted by Taylor - November 25, 2008 03:17 PM - In The News

Comments

i think this is great! I can't count all of the times that mom-and-pop companies have overcharged or cheated me and never been willing to make amends for their mistakes. that's what i love about wal-mart.

Posted by Clint - December 9, 2008 09:45 PM

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