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Michigan Challenges Wal-Mart on Item Pricing

March 2, 2006

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Michigan Attorney General Mike Cox is taking legal action against retailing giant Wal-Mart for its alleged failure to individually price items as required by state law.

The action follows an extensive investigation of Wal-Mart stores statewide in Michigan by investigators from the Attorney General's office, beginning in December of 2005.

"Consumers in Michigan have a right to know the cost of an item when they go shopping," Cox said. "That means stores have a duty to follow the law and label prices on individual items. The results of my office's investigation are clear: Wal-Mart has failed to comply with Michigan's item pricing law on a massive scale."

Five Wal-Mart stores were audited: Okemos, Howell, Roseville, Saginaw and Coldwater. The highest estimated compliance was found at the Okemos store (75%). The Saginaw store had an estimated compliance rate of 25%. The Roseville, Coldwater and Howell stores all had estimated compliance rates of 20%.

"Marking prices on only 20 percent of items is shocking and inexcusable. And when multiple stores fail to comply with Michigan's item pricing law, it becomes more than just a store manager problem. It is a Wal-Mart problem," he said.

"Michigan's law is clear: price items individually, so consumers can shop and compare. This legal action against Wal-Mart will improve their item pricing and cause other retailers to do the same," Cox added.

The legal action is in the form of a Notice of Intended Action (NIA), a generally necessary step before a company can be sued by the Attorney General under the Consumer Protection Act.

The NIA alleges violations of Michigan's Pricing and Advertising of Consumer Items Act, frequently referred to as the "Item Pricing Act," and Michigan's Consumer Protection Act.

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