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The settlement, which includes a $1.61 million civil penalty, is the largest ever obtained by the Division’s Office of Weights and Measures (“OWM”).
Walmart was accused of violating New Jersey’s Consumer Fraud Act (“CFA”) and Unit Pricing Disclosure Act (“UPDA”) by using inaccurate unit pricing for a variety of grocery products sold in the chain’s New Jersey locations, Attorney General Matthew J. Platkin said.
The UPDA requires grocery retailers to display the price of food, cleaning products, coffee, cereal, and other regulated commodities using a standard unit of measurement set by regulation – such as quart, pound, or per 100 sheets. Unit pricing makes it easier for consumers to compare prices among like products packaged in different sizes or quantities to determine which is the best value for their money.
New Jersey is one of nine states nationwide with mandatory unit pricing laws in force. The other states are Connecticut, Maryland, Massachusetts, New Hampshire, New York, Oregon, Rhode Island, and Vermont.
During the first three months of 2023, OWM conducted pricing inspections of Walmart stores throughout the state and found more than 2,000 instances where the incorrect unit of measurement was used.
In addition to using incorrect units of measurement, various units of measurement were often used within the same category of merchandise—such as using per can, per pound, or per 100-count for coffee—making it extremely difficult, if not impossible, for shoppers to compare prices.
This is the second time in less than a year that a chain retailer has agreed to pay the Division a seven-figure settlement to resolve allegations of chronic, widespread pricing violations.
In November 2023, Dollar General Corp. agreed to a $1.2 million settlement resolving allegations stemming from OWM inspections identifying thousands of items that scanned for higher prices at the cash register than were posted where the merchandise was displayed for sale. The settlement included a $1.18 million civil penalty that, until today, was the highest ever obtained by OWM.
In addition to paying a $1,616,091 civil penalty and reimbursing the Division $25,409 for investigative costs and attorney’s fees, the settlement requires Walmart to make changes to its business practices to prevent future violations.
Those changes, contained in a Consent Order filed with the Division today, require Walmart to:
- comply with all applicable state and federal laws and not engage in any unconscionable business practices or pricing violations as prohibited by the CFA, the Unit Pricing Disclosure Act, and the Unit Pricing Regulations;
- use the approved unit of measure for every regulated commodity sold or advertised;
- within 90 days of the settlement, incorporate training regarding Walmart’s obligation to comply with New Jersey’s unit pricing laws and regulations into the onboarding process for all new employees working in New Jersey Walmart stores who have pricing responsibilities;
- conduct internal audits for a period of three years, such that each New Jersey Walmart store is audited at least once a year. The internal audits will include the random sampling of 100 regulated items, and an audit revealing errors in more than 2% of the products sampled at any one store shall constitute a failed audit;
- semi-annually submit to the Division a corrective action plan for failed audits during the preceding six-month period, along with a summary of likely reasons and efforts to prevent future unit pricing errors;
- submit the first corrective action plan to the Division no later than one year after the effective date of the settlement; and
- retain all reports and records of every internal audit for a period of three years and provide them to the Division upon request.
The inspections were conducted by Investigators Joseph Singh, Michelle Szatkowski, Aniyah Brooks, and Shianne Vieira, within OWM’s Pricing Section, under the supervision of Chief Investigator Kelly Fairclough and Acting Superintendent David Freed.
Deputy Attorney General Jeffrey Kozier, under the supervision of Consumer Fraud Prosecution Section Chief Jesse Sierant within the Division of Law’s Affirmative Civil Enforcement Practice Group, represented the State in this matter.
Consumers who believe that a business is in violation of New Jersey’s consumer protection or pricing laws are encouraged to file an online complaint. Consumers can also call 1-800-242-5846 to receive a complaint form by mail.
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