DATE: June 17, 2003
TO: Board of Supervisors
SUBJECT: Creating Consumer Awareness About Scanner Accuracy
SUMMARY:
Recent projections by San Diego County's Department of Agriculture, Weights,
and Measures estimate that automated price scanner overcharges could be
costing this region's consumers in excess of $100 million annually.
This action proposes steps that will empower the consumer with information that will protect them from point of sale scanning errors and overcharges through a program designed to publicly identify those stores that fail scanner inspections and to also recognize those stores that do pass scanner inspections.
Recommendation:
Vice Chairwoman Dianne Jacob
- Direct the CAO to work with the industry to create a program to post, in each store with overcharges, a sign notifying the consumers of a failed scanner inspection.
- Direct the CAO to work with the industry to create a voluntary program to post, in each store showing no overcharges, a sign notifying the consumers of a positive scanner inspection.
- Direct the CAO to work with the industry to create a public notification program for consumers notifying them of their rights at every scanner location in the region.
- Return to the Board of Supervisors in 60-days with a proposal for approval.
Fiscal Impact:
There is no fiscal impact as a result of this action.
Background:
On January 12, 1999, the Board of Supervisors passed the "Consumer
Protection Act of 1999" which requires all San Diego County retailers
employing automated price scanning devices to register their scanners
with the County and authorized County staff to test the systems for accuracy.
Recent projections by San Diego County's Department of Agriculture, Weights, and Measures estimate that automated price scanner overcharges could be costing this region's consumers in excess of $100 million annually.
The study found that errors in prices charged to customers are consistently in favor of the retailer across all categories of retail sales. Data collected from July 1999 through April 2003 show that more than half (54.5%) of inspections found violations that resulted in overcharges. The data also shows overcharges outnumber undercharges three-and-a-half to one.
Currently, the County's Department of Agriculture, Weights, and Measures provides a list of store locations with scanner violations to the public on their website, www.sdcawm.org. The department also has a complaint line for consumers that discover errors or inconsistencies between the shelf price and the scanned price.
But, more can and should be done to inform and protect local consumers. This action proposes to implement a requirement for a "posting" on-site of a failed inspection to warn consumers that there were recent overcharges at that particular location. Also, stores that show no overcharges may post a positive notification that will reward compliance and potentially may result in an increase of consumer confidence at that store.
This action further proposes to require the placement of consumer rights stickers or "postings" on every scanner to inform the consumers that they are entitled to the lowest advertised or posted price, despite the scanned price. The complaint line may also be posted on this sticker for consumers to report any suspected violations.
The data collected by the County of San Diego in the last four years can be projected to prove that local shoppers are losing millions of dollars due to scanner overcharges. With this knowledge, it is critical that the Board of Supervisors take a strong stance on behalf of consumers in order to empower local shoppers with information and resources to protect them from scanner overcharges.
I urge your support to protect consumers throughout San Diego County from scanner overcharges
Respectfully Submitted,
DIANNE JACOB
Supervisor, Second District
