Michigan Attorney General Cox Announces $1.5 Million Settlement With Wal-Mart Over Item Pricing Claims

25 April 2006

Michigan Attorney General Mike Cox announced today that retail giant Wal-Mart has agreed to pay the largest fine in state history to settle claimed violations of Michigan's item pricing law. The agreement follows issuance of a Notice of Intended Action on March 1, 2006, alleging massive failure to individually price items, which stands in violation of Michigan law.

Under the terms of the record $1.5 million settlement, Wal-Mart will pay $780,000 in penalties and reimbursement of costs incurred by the state. Additional penalties of $620,000, to be deposited in a separate, segregated account, will be used to pay for Independent Audits and will be, after a period of two years, waived if the store maintains item pricing compliance.

"This far-reaching and innovative settlement will help assure continued item pricing compliance by Wal-Mart," Cox said. "It is my hope that it will also serve as a notice to other Michigan retailers that violation of Michigan's item pricing laws will not be tolerated."

"Michigan's law is clear: items on store shelves must be clearly marked with a price tag, so consumers know how much an item costs before they reach the checkout register and can verify that they were not overcharged after leaving the store," Cox said. "Retailers that fail to individually price stock are in violation of the law and impede the ability of consumers to comparison shop for the lowest price."

Cox added: "Wal-Mart is to be commended for the swift corrective action taken in response to the notice of intended legal action issued by my office. Within days of the notice, Consumer Protection staff verified significant and impressive improvement by Wal-Mart stores in pricing stock to comply with Michigan's law."

Under the terms of the settlement, in addition to paying fines and costs, Wal-Mart will establish and implement an item pricing compliance plan to assure continued pricing compliance that includes maintaining adequate resources including appropriate staffing levels, equipment, and signage. If follow-up audits establish continuing non-compliance, additional penalties will be imposed and paid from amounts placed in the segregated fund.

Wal-Mart also agreed to donate $100,000 to Michigan food banks.

During Attorney General Cox's first three years in office, his Consumer Protection Division is responsible for more than $35 million in recoveries, including more than $12.9 million in recoveries directly to Michigan consumers. In three years in office, Cox has recovered more money for Michigan consumers than any three-year period of another Attorney General.

The Attorney General has a detailed Consumer Alert addressing frequently asked item pricing questions by consumers and a wallet-sized item pricing bill-of-rights card, both available by calling the Consumer Protection Division, 1-877-SOLVE-88 (1-877-765-8388), or accessing the Attorney General's Web site, http://www.michigan.gov/ag .

Consumers with complaints about a store's failure to item price should continue to direct information to the Department of Agriculture, Weights & Measures Section, in the E. C. Heffron Laboratory, by calling 517-322-1370 or in writing addressed to 940 Venture Lane, Williamston, MI 48895.

Source: prnewswire

All trademarks and copyrighted information contained herein are the property of their respective owners.