Consumer Affairs

Price Scanning Inspections at Small Stores
Information Sheet No. 2

In Seattle, overcharges to customers resulting from price scanning errors are considered violations of the prohibition contained in the Seattle Municipal Code (SMC) against misrepresentation of prices [SMC 7.04.505]. These violations are criminal misdemeanors [SMC 7.04.690.B]. The Consumer Affairs Unit (formerly Weights and Measures) enforces this Code provision by conducting unannounced inspections of all stores that use price scanning equipment.

Inspectors verify pricing accuracy by selecting a randomized sample folowing procedures contained in the National Conference on Weights and Measures (NCWM) Publication 19 Examination Procedure for Price Verification (August 1995). A store fails an inspection when overcharges exceed two percent (2%) in the sample. After an initial failed inspection, the Consumer Affairs Unit sends a noncompliance letter to the store manager with an information copy to the corporate office. The letter explains that the store is not in compliance with the pricing accuracy standard and will be reinspected within ninety (90) days. If the store fails a reinspection a warning letter notifies the store manager that the store is still not in compliance and will be reinspected again within ninety (90) days. The warning letter also states that the Consumer Affairs Unit may submit a criminal complaint to the City Attorney if there is a third consecutive failed inspection.

The Consumer Affairs Unit began our current program of price scanning inspections in 1994. At first, these inspections were limited to large retail stores because they have the largest impact on consumers. Overcharges dropped from 4.0% to 1.0% in two years and now large retail stores routinely pass inspections. In 1996, price scanning inspections were extended to small retail stores. In these inspections, sample sizes were reduced to 25 or 50 items. Inspectors now often combine unit pricing, labeling, package testing and other inspections with price scanning inspections.

To prepare small retail stores for price scanning inspections, the Consumer Affairs Unit will provide training to store managers upon request. This training explains how price scanning inspections are conducted and how to avoid price scanning errors. In 1996, training was provided to larger stores such as Bartell's, the Bon Marche, Drug Emporium, Home Depot, QFC, Albertsons, Office Depot, the Washington State Food Dealer's Association, and the Puget Consumer Cooperative. If you wish to arrange training for your store managers please contact the Consumer Affairs Unit.