Walmart to Pay $1.64 Million Settlement for Unlawful Pricing Practices in New Jersey
Walmart to Pay $1.64 Million to Settle Allegations of Unlawful Pricing Practices in New Jersey
Walmart has agreed to pay $1.64 million to settle allegations of engaging in unlawful pricing practices at its 64 stores across New Jersey. The resolution, announced on June 18, includes a $1.61 million civil fine, marking the largest fine ever obtained by the state Division of Consumer Affairs’ Office of Weights and Measures.
Authorities claim that Walmart violated the state’s Consumer Fraud Act and Unit Pricing Disclosure Act by inaccurately displaying unit prices for various grocery products such as food, cleaning items, coffee, cereal, and other regulated commodities. The Unit Pricing Disclosure Act requires grocery retailers to present prices using standardized units, allowing consumers to easily compare costs of differently sized or packaged items.
During inspections in early 2023, over 2,000 instances were identified where Walmart stores used incorrect units of measurement, making it challenging for shoppers to compare prices within the same product category. New Jersey is one of nine states that require grocery retailers to display prices using standard measurements like pounds and quarts.
New Jersey Attorney General Matthew Platkin stated, “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.”
In addition to the civil penalty, Walmart will also reimburse $25,409 for investigative costs and attorney’s fees. The settlement requires Walmart to change its business practices to prevent future violations, including complying with all state and federal laws, using approved units of measure, and integrating training on New Jersey’s unit pricing laws for employees.
Acting Director of the Division of Consumer Affairs Cari Fais emphasized that the state is holding chain retailers accountable for violating pricing laws to protect consumers. This settlement follows a similar case in November 2023, where Dollar General agreed to a $1.2 million settlement over pricing discrepancies.
Walmart, based in Bentonville, Arkansas, did not admit wrongdoing but stated that they take their obligations to provide accurate unit prices seriously to enable customers to comparison shop.