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Walmart has agreed to pay $1.64 million to settle allegations the retail chain engaged in unlawful pricing practices at its 64 stores across New Jersey.

Announced June 18, the resolution includes a $1.61 million civil fine. New Jersey Attorney General Matthew Platkin said it is the largest the state Division of Consumer Affairs‘ Office of Weights and Measures (OWN) has ever obtained.

According to authorities, Walmart allegedly violated the state’s Consumer Fraud Act (CFA) and Unit Pricing Disclosure Act (UPDA) by inaccurately displaying unit prices for various grocery products, like food, cleaning items, coffee, cereal and other regulated commodities.

The UPDA requires grocery retailers to present prices using standardized units – such as per quart, per pound or per 100 sheets – enabling consumers to easily compare costs of differently sized or packaged items so they can determine which is the best value for their money.

During a series of inspections in early 2023, the state identified over 2,000 instances where Walmart stores used incorrect units of measurement. According to authorities, the displayed information often varied within the same product category, making it “extremely difficult, if not impossible, for shoppers to compare prices.”

New Jersey is one of nine U.S. states that requires grocery retailers to display prices using standard, easy-to-understand measurements such as pounds and quarts. Connecticut, Maryland, Massachusetts, New Hampshire, New York, Oregon, Rhode Island and Vermont have similar mandates.

Sending a clear message

Platkin commented, “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.”

“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,” he said.

The state also noted that prior inspections of Walmart stores statewide in 2021 and 2022 already resulted in $226,950 in fines for unit pricing violations.

In addition to the newly levied $1.61 million civil penalty and a $25,409 reimbursement for investigative costs and attorney’s fees, the settlement requires Walmart to change its business practices to prevent future violations.

In a statement to NJBIZ regarding the settlement, a Walmart spokesperson said, “We believe a settlement is in the best interest of all involved. We’ll always work to provide our customers everyday low prices they can count on.”

The Bentonville, Ark.-based chain did not admit wrongdoing, but in a consent order said it “takes seriously its obligations to provide accurate unit prices to enable customers to comparison shop.”

As part of the consent order filed with the Division of Consumer Affairs, Walmart must:

• Comply with 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 internal audit reports and records for three years and provide them to the Division upon request

Acting Director of the Division of Consumer Affairs Cari Fais stated, “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.”

“To protect our consumers, we are pursuing significant penalties that hold companies accountable for financial harm they inflict on consumers and deter them from future unlawful conduct,” Fais said.

This settlement follows another high-profile case in November 2023. At that time, Dollar General agreed to a $1.2 million settlement over similar pricing discrepancies.