California Consumers to Get $3 Refunds from Wal-Mart

State finds price-scanning errors result in overcharges at checkout

November 24, 2008

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California Attorney General Edmund G. Brown Jr. and San Diego District Attorney Bonnie Dumanis today announced a settlement with Wal-Mart Stores, Inc. that will “help consumers as the holiday season approaches” by giving Californians $3 back at the cash register to make up for price-scanning errors.

“We found price-scanning errors in Wal-Mart stores across California,” Brown 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.”

In settlement of the case, Wal-Mart has agreed to pay $1.4 million in restitution, civil penalties and reimbursement for investigative costs, and $50,000 to the State Consumer Protection Prosecution Trust Fund.

In the settlement agreement, Wal-Mart agreed to implement a pricing accuracy program in California for at least four years. The program will include:

• A designated person (or group of people) who will receive and address customer complaints from Wal-Mart stores in California.

• An employee (or group of employees) in every Wal-Mart Store who will scan items on a weekly basis and confirm price accuracy.

• An automatic refund program. Whenever an employee becomes aware that a customer has been or is being charged a price higher than the lowest price currently listed, Wal-Mart will give the customer a $3.00 reduction on the item. If the item is less than $3.00, the customer will receive that item for free.

• A sign, in English and Spanish, will be posted at every check-out stand in every Wal-Mart Store clearly outlining the new store refund policy.

In December 2005, the state began an investigation into allegations that Wal-Mart stores in California were scanning items at a higher price than the prices advertised on store shelves and signs. Through random price-checking, county Departments of Weights and Measures across the state 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.

Examples of price-scanning errors include:

• From late August to November 2006, customers were overcharged $1.00 on sports bras in Ventura, San Diego, Los Angeles, San Bernardino, Stanislaus, Siskiyou and Tuolumne Counties.
• In January and February 2007, customers were overcharged $2.00 for woven shirts in San Diego, Sacramento, Ventura, Los Angeles and San Bernardino Counties.
• In December 2007, customers were overcharged $2.00 on S/S Polo in San Diego County.
• In November 2003, customers were overcharged $5.16 on a Journey CD in Ventura and Los Angeles Counties.
• From December 2004 to February 2005, customers were overcharged $5.02 on Hanes underwear in Los Angeles County.
• In October and November 2006, customers were overcharged $2.00 on a pair of men’s pants in San Diego and Tuolumne Counties.
• In March and April 2006, customers were overcharged $1.00 on Kellogg’s Special K cereal in Los Angeles and Santa Clara Counties.
• Also in March and April 2006, customers were overcharged $.46 on Kellogg’s Rice Krispies cereal in Madera, King and Ventura Counties.

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