(Newswire.net — September 18, 2014) — In June 2014, Wal-Mart launched a Father’s Day sale, including advertising 12-packs of Coca-Cola products for $3.00. However, when consumers in New York State attempted to purchase the sale items, customers were routinely charged $3.50.
When consumers complained about being charged more than the advertised price, Wal-Mart staff falsely told them that New York has a ‘Sugar Tax.’ The investigation concluded that the markup of over 16% above the advertised price violates New York State’s General Business Law 349 and 350.
“There has to be one set of rules for everyone, no matter how rich or how powerful, and that is why our office must ensure that even the largest corporations cannot advertise one price and then charge a higher one to New Yorkers,” said Attorney General Eric T. Schneiderman. “Whether it’s securing the largest financial settlements in US history to address misconduct that crashed the economy, or settling cases with the nation’s largest retailers, this office will continue to stand on the side of ordinary New Yorkers,” said Schneiderman.
But it turns out that this isn’t an isolated incident. The investigation also determined that Wal-Mart ran a similar sale in March that resulted in the company failing to honor the advertised price for Coca-Cola soft drinks in New York.
Despite documented complaints from consumers about the price discrepancy, the company failed to adjust prices until requested by the Attorney General’s Office.
In total, Wal-Mart sold 66,000 12 packs of Coca-Cola products – or nearly 800,000 individual sodas – at the inflated price. That, says the Attorney General, was a violation of state law.
As a result, the company is required to pay, as part of a settlement, over $66,000 in penalties and other costs. The company was also tasked with taking steps to improve the way that the respond to customer complaints about pricing.
Walmart is one of the world’s largest retailers, operating more than 11,000 stores in 27 countries; 117 of those stores are located in the State of New York. It ranks #20 on Forbes’ Global 2000 for 2014. The company, founded by Samuel Moore Walton and James Lawrence Walton in 1962, pulls in over $400 billion annually.