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The record-breaking settlement includes a $1.61 million civil penalty for Walmart’s alleged violations of unit pricing laws across New Jersey stores.
6-18-2024 5:07pm
Walmart to Pay $1.64 Million Settlement Over Alleged Unlawful Pricing Practices in NJ
NEW JERSEY - Attorney General Matthew J. Platkin and the Division of Consumer Affairs announced today that Walmart has agreed to pay $1.64 million to settle allegations of unlawful unit pricing practices across its 64 New Jersey retail stores. The settlement, which includes a $1.61 million civil penalty, marks the largest ever obtained by the Division’s Office of Weights and Measures (OWM).
The allegations state that Walmart violated New Jersey’s Consumer Fraud Act (CFA) and Unit Pricing Disclosure Act (UPDA) by inaccurately displaying unit prices for various grocery products. The UPDA mandates grocery retailers to present prices using standardized units such as per quart, per pound, or per 100 sheets, enabling consumers to compare prices of differently sized or packaged items easily.
During inspections in early 2023, OWM identified over 2,000 instances where incorrect units of measurement were used at Walmart stores, often varying within the same product category, complicating price comparisons for shoppers. Previous inspections in 2021 and 2022 had already resulted in $226,950 in fines for similar violations.
“As the price of grocery items continues to rise, it’s more important than ever to ensure consumers have all the information they need—and are entitled to by law—to make educated decisions on how to spend their money,” said Attorney General Platkin. “The significant fine Walmart will pay as a result of 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.”
This settlement follows another high-profile case in November 2023, where Dollar General Corp. agreed to a $1.2 million settlement over similar pricing discrepancies.
“We’re putting chain retailers on notice that repeatedly violating New Jersey’s pricing laws will not result in fines they can easily absorb as the cost of doing business,” said Cari Fais, Acting Director of the Division of Consumer Affairs.
In addition to the civil penalty, Walmart will reimburse the Division $25,409 for investigative costs and attorney’s fees and implement measures to prevent future violations. The Consent Order mandates Walmart to:
- Adhere to all state and federal laws, avoiding any unconscionable business practices or pricing violations.
- Use approved units of measure for all regulated commodities.
- Integrate training on New Jersey’s unit pricing laws into the onboarding process for new employees with pricing responsibilities within 90 days.
- Conduct annual internal audits at each New Jersey store for three years, randomly sampling 100 regulated items per store. Errors exceeding 2% in sampled products will result in a failed audit.
- Submit semi-annual corrective action plans for failed audits, detailing reasons and prevention strategies, starting within one year of the settlement.
- Retain all audit reports and records for three years and provide them to the Division upon request.
The inspections were led by Investigators Joseph Singh, Michelle Szatkowski, Aniyah Brooks, and Shianne Vieira, under the supervision of Chief Investigator Kelly Fairclough and Acting Superintendent David Freed. Deputy Attorney General Jeffrey Kozier, supervised by Consumer Fraud Prosecution Section Chief Jesse Sierant, represented the state in this matter.
Consumers suspecting violations of New Jersey’s consumer protection or pricing laws can file complaints online or request a complaint form by calling 1-800-242-5846.
