Walmart to pay 1.64 million USD over pricing practices in New Jersey
An employee organises carts outside a Walmart store in Monterrey, Mexico.
Largest settlement in New Jersey's consumer affairs history
Walmart, the world's largest retailer, has agreed to a $1.64 million payment to address regulatory charges stemming from improper pricing practices at its 64 New Jersey stores. The settlement, announced by New Jersey Attorney General Matthew Platkin on Tuesday (June 18), includes a $1.62 million civil fine, the highest penalty ever obtained by the state's Office of Weights and Measures within the Division of Consumer Affairs.
Violations found in grocery pricing standards
New Jersey authorities discovered over 2,000 pricing irregularities in the first quarter of 2023 among multiple Walmart locations. Inspectors discovered that the same products, such as coffee, were priced inconsistently in various units, including pounds, cans, and pods, making it difficult for consumers to compare prices effectively. New Jersey is one of nine states that requires grocery stores to display prices in standard units such as pounds and quarts to allow for easier price comparison for customers.
"As the price of grocery items continues to rise," Platkin stated, "this settlement sends a clear message that New Jersey will not allow retailers to engage in unlawful pricing practices that deny shoppers the ability to easily compare prices to figure out which product is a better buy."
Walmart commits to enhanced compliance measures
Despite not admitting wrongdoing, Walmart has pledged to improve its pricing practices as part of the settlement agreement. The Bentonville, Arkansas-based retailer stated that it "takes seriously its obligations to provide accurate unit prices to enable customers to comparison shop." Walmart has committed to enhancing employee training and conducting random screenings of items to ensure accurate price displays.
"We believe a settlement is in the best interest of all involved," Walmart said in a statement. "We'll always work to provide our customers everyday low prices they can count on."
The case follows a similar settlement reached in November when Dollar General agreed to pay $1.2 million to resolve claims of scanning greater prices at checkout than those displayed on goods displays. That settlement had previously established the record for the highest fine imposed by New Jersey's weights and measures office.
(With inputs from Agencies)