REGION: Stores overcharging customers, county says

Report: More than half of stores inspected had pricing errors

By EDWARD SIFUENTES - Staff Writer | Tuesday, December 2, 2008 10:05 PM PST ∞

Want to save money this holiday shopping season? Check your receipts. You may be paying too much, county officials say.

The county's Department of Agriculture, Weights and Measures said this week that it found pricing errors at more than half of the 1,011 stores it has inspected since January.

The errors came from price-scanning glitches, said Jim Byers, deputy sealer for the county. Many are caused by human error because the prices are not changed after a sale during the busy holiday season, he said.

"Nobody intentionally tells their employees to go out and overcharge customers," Byers said Tuesday. "It may be just poor attention or lack of attention."

Michael Shames, executive director of the Utility Consumers Action Network, a San Diego-based consumer advocacy organization, said he was surprised by the high error rate.

"It's deeply disturbing and absurd," Shames said.

The 50 percent failure rate includes errors in overcharging and undercharging. However, stores were 3.5 times more likely to overcharge customers than undercharge, according to the county.

Companies that commit scanning errors are subject to fines ranging from $100 to $1,000, depending on the number of pricing mistakes, the amount overcharged and the number of items purchased during the inspection, Byers said.

During the past two years, more than 400 fines have been issued to stores throughout the county, including Henry's Farmers Market, 7-Eleven, Home Depot and Ralphs.

For example, the Henry's Farmers Market in Carlsbad was fined $400 for overcharging $5.99 on one item during an inspection in March. The grocery store chain has been fined $2,250 this year after failing 11 different inspections, according to the county.

The company did not provide an official for an interview, but released a written statement.

"We understand that during these challenging economic times, our customers rely on Henry's more than ever for our value pricing on healthy and natural foods," said Aimee Della Bitta, the company's marketing manager. "We strive for 100 percent accuracy with our scanning machines and take any errors that may have occurred very seriously."

Since 2006, the county has participated in nearly a dozen civil lawsuits against such companies as Wal-Mart, Kragen Auto Parts, Target, Toys 'R' Us, AutoZone and Baskin-Robbins for allegedly overcharging customers.

Last month, Wal-Mart agreed to pay $1.4 million in civil penalties and other costs for allegedly overcharging customers on scanned items. It did not admit any wrongdoing.

Consumers often are unaware they are paying more than they are supposed to, Shames said. In recent years, stores have started to rely more on scanned pricing rather than individually priced items, placing the burden on customers to be more aware of how much they are paying, he said.

"The problem is, most people don't know" that they are overpaying, Shames said.

Shames said customers should not be required to be "price police." He said the fines that stores pay should be used to hire more inspectors.

Under a county ordinance, the Department of Agriculture, Weights and Measures routinely conducts price accuracy inspections, Byers said. Inspectors buy about 40 items and compare the scanned prices with the prices posted in the stores.

The fines paid to the county go into its general fund, Byers said.

Stores that pass the inspection are given a sign they can post for 10 days. Those that fail must post a penalty notice at the entrance of their stores for 10 days.

Byers said the holidays are especially troublesome for stores because of short, half-day or one-day sale prices, and inexperienced temporary help hired during the busy shopping season.

Shoppers should be aware of prices and let store employees know when they notice an error, Byers said.

"I wouldn't trust the employee or the machine that's supposed to know the price," he said.

To view a list of the businesses with overcharging violations, visit www.sdcounty.ca.gov/awm/violations_scanners.html. To report a complaint, contact the county's Department of Agriculture, Weights and Measures at (888) 878-3722.

Contact staff writer Edward Sifuentes at (760) 740-3511 or esifuentes@nctimes.com.

Other North County businesses fined by the county:

Grangetto's Agricultural Supply, Encinitas

Overcharge: $3.20

Penalty: $700

Arco AM/PM, Ramona

Overcharge: $2.30

Penalty: $500

Fresh & Easy Neighborhood Market, Escondido

Overcharge: $1

Penalty: $100

Foot Locker, Escondido

Overcharge: $10

Penalty: $250