Arizona sueing Walmart and Autozone for overcharging!
Posted: Fri Jul 07, 2006 10:14 am
Walmart is looking at possible "millions" of $$'s in fines from a lawsuit filed by the Az. Attorney General!! I can't tell you how many times this has happened to me, pick something up and the price rings up higher than the posted price......I realize we're all human and make mistakes but this is unacceptable IMHO. And it's not just Walmart, another retailer, Autozone is named in the lawsuit.......Walmart however has the highest rate of overcharging, 54%!
http://www.azcenrtal.com
Wal-Mart, AutoZone sued by state
Goddard alleges consumer fraud, seeks penalties
Michael Kiefer
The Arizona Republic
Jul. 7, 2006 12:00 AM
The country's largest overall retail chain and the largest retailer of auto parts were hit with consumer-fraud lawsuits in Arizona on Thursday for refusing to comply with state pricing laws.
Arizona Attorney General Terry Goddard filed lawsuits in Maricopa Country Superior Court against Wal-Mart and AutoZone for consistently failing to list accurate prices on their shelves or for failing to post them at all.
"Consumer purchases are not games of chance," Goddard said. "Arizona law makes it very clear: Consumers have a right to know what they're being charged, and they have a right to accurate pricing on the product. Violations of those rights are very damaging to consumers in our state." advertisement
In the lawsuits, Goddard asked for civil penalties of $10,000 per violation. And although he could not give an estimate of the number of violations, the penalties could reach into the millions.
In Arizona, prices do not need to be marked on every item for sale, but they need to be clearly posted where the product is displayed. And the price posted on the shelf should be the same price that appears on the customer's receipt when it is scanned at the cash register.
Inspectors from the state Department of Weights and Measures routinely check both points by taking samples of 250 products to make sure prices are posted and also samples of 50 items to make sure they are properly marked. Stores must be at least 98 percent in compliance or they fail. Then they are subject to reinspections within 60 days.
Since 2001, according to figures provided by the Department of Weights and Measures, Wal-Mart has failed 526 of 976 inspections, or nearly 54 percent, at various stores across the state. AutoZone has failed 426 of 846 inspections or 50 percent, statewide.
Goddard said more than half of the violations against both companies were on reinspections, when store managers knew inspectors were coming.
Wal-Mart, which has 70 stores in Arizona, has been fined $450,000 for violations, an amount that would have been larger if it weren't capped by Arizona statute. AutoZone, which has 90 stores in Arizona, has paid fines of nearly $170,000, Goddard said.
"Neither company has ever appealed these fines," Goddard said. "We come to the inescapable conclusion that they simply consider the fines in Arizona for illegal pricing as simply a cost of business."
Goddard could not say whether the mispricing of items is an attempt to deliberately overcharge customers or merely a failure to clean up a sloppy system.
When asked if more lawsuits would be filed against other offending retailers, Goddard answered, "We're starting with the leaders. We're starting with the largest auto-parts retailer in the country and in Arizona and the largest retailer in the country and in Arizona, because I believe that what happens to the leaders is going to be reflected in the rest of the industry. We can't afford to sue every company that's violated for several times."
Representatives from Wal-Mart and AutoZone did not return calls for comment. Wal-Mart pricing has been investigated in Michigan and Connecticut as well.
http://www.azcenrtal.com
Wal-Mart, AutoZone sued by state
Goddard alleges consumer fraud, seeks penalties
Michael Kiefer
The Arizona Republic
Jul. 7, 2006 12:00 AM
The country's largest overall retail chain and the largest retailer of auto parts were hit with consumer-fraud lawsuits in Arizona on Thursday for refusing to comply with state pricing laws.
Arizona Attorney General Terry Goddard filed lawsuits in Maricopa Country Superior Court against Wal-Mart and AutoZone for consistently failing to list accurate prices on their shelves or for failing to post them at all.
"Consumer purchases are not games of chance," Goddard said. "Arizona law makes it very clear: Consumers have a right to know what they're being charged, and they have a right to accurate pricing on the product. Violations of those rights are very damaging to consumers in our state." advertisement
In the lawsuits, Goddard asked for civil penalties of $10,000 per violation. And although he could not give an estimate of the number of violations, the penalties could reach into the millions.
In Arizona, prices do not need to be marked on every item for sale, but they need to be clearly posted where the product is displayed. And the price posted on the shelf should be the same price that appears on the customer's receipt when it is scanned at the cash register.
Inspectors from the state Department of Weights and Measures routinely check both points by taking samples of 250 products to make sure prices are posted and also samples of 50 items to make sure they are properly marked. Stores must be at least 98 percent in compliance or they fail. Then they are subject to reinspections within 60 days.
Since 2001, according to figures provided by the Department of Weights and Measures, Wal-Mart has failed 526 of 976 inspections, or nearly 54 percent, at various stores across the state. AutoZone has failed 426 of 846 inspections or 50 percent, statewide.
Goddard said more than half of the violations against both companies were on reinspections, when store managers knew inspectors were coming.
Wal-Mart, which has 70 stores in Arizona, has been fined $450,000 for violations, an amount that would have been larger if it weren't capped by Arizona statute. AutoZone, which has 90 stores in Arizona, has paid fines of nearly $170,000, Goddard said.
"Neither company has ever appealed these fines," Goddard said. "We come to the inescapable conclusion that they simply consider the fines in Arizona for illegal pricing as simply a cost of business."
Goddard could not say whether the mispricing of items is an attempt to deliberately overcharge customers or merely a failure to clean up a sloppy system.
When asked if more lawsuits would be filed against other offending retailers, Goddard answered, "We're starting with the leaders. We're starting with the largest auto-parts retailer in the country and in Arizona and the largest retailer in the country and in Arizona, because I believe that what happens to the leaders is going to be reflected in the rest of the industry. We can't afford to sue every company that's violated for several times."
Representatives from Wal-Mart and AutoZone did not return calls for comment. Wal-Mart pricing has been investigated in Michigan and Connecticut as well.