Walmart to Pay $1.64 Million Settlement for Alleged Unlawful Pricing Practices
Walmart Agrees to Pay $1.64 Million in Record Settlement for Unit Pricing Violations
On June 18, 2024, Attorney General Matthew J. Platkin and the Division of Consumer Affairs announced a groundbreaking settlement with international retailer Walmart. The settlement, totaling $1.64 million, aims to resolve allegations of unlawful unit pricing practices at 64 Walmart retail stores across New Jersey. Notably, this settlement includes a $1.61 million civil penalty, marking the largest ever obtained by the Division’s Office of Weights and Measures (OWM).
The allegations against Walmart revolve around violations of New Jersey’s Consumer Fraud Act (CFA) and Unit Pricing Disclosure Act (UPDA). These violations stem from the retailer’s use of inaccurate unit pricing for various grocery products sold in their New Jersey stores. Unit pricing, mandated by the UPDA, allows consumers to compare prices of similar products packaged in different sizes or quantities, enabling informed purchasing decisions.
New Jersey stands among nine states in the US with mandatory unit pricing laws, emphasizing the importance of fair pricing practices in retail. During the initial three months of 2023, OWM conducted pricing inspections at Walmart stores statewide, uncovering over 2,000 instances of incorrect unit measurements. This inconsistency in unit measurement, varying even within the same category of products, hindered consumers’ ability to compare prices effectively.
Attorney General Platkin highlighted the significance of providing consumers with accurate pricing information, especially amidst rising grocery costs. The hefty fine imposed on Walmart underscores New Jersey’s commitment to preventing retailers from engaging in deceptive pricing practices that undermine consumers’ ability to make informed purchasing decisions.
This settlement reflects a recurring pattern of pricing violations by Walmart in New Jersey. Previous OWM inspections in 2021 and 2022 had resulted in fines totaling $226,950 against the retailer for unit pricing discrepancies. Acting Director of the Division of Consumer Affairs, Cari Fais, emphasized the need to hold retailers accountable for financial harm inflicted on consumers, signaling a stringent stance against pricing violations.
The settlement requires Walmart to pay a $1,616,091 civil penalty, reimburse the Division $25,409 for investigative costs and attorney’s fees, and implement operational changes to prevent future violations. These changes, outlined in a Consent Order filed with the Division, include compliance with state and federal laws, mandatory training for employees on unit pricing laws, internal audits, and submission of corrective action plans for failed audits, among other measures.
In conclusion, the settlement with Walmart underscores New Jersey’s unwavering commitment to consumer protection and fair pricing practices. By holding retailers accountable for pricing violations, the state aims to safeguard consumer interests and promote transparency in the retail sector. Consumers are encouraged to report any violations of consumer protection or pricing laws to uphold fair business practices and protect consumer rights.
