H3491 - ITEM PRICING
*DISCHARGED FAVORABLY TO HOUSE WAYS & MEANS -
MFA's proposal to create a waiver system for food stores/departments that no longer wish to item price
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H987/S1844/H100 - AN ACT RELATIVE TO CLEAR AND CONSPICUOUS PRICE DISCLOSURE
(Effective January 1, 2012)
PURPOSE OF THE PROPOSAL:
- Update the Massachusetts item pricing laws for food stores and food departments;
- Eliminate price discrepancy caused by human error in food stores and food departments. Presently only food stores and food departments within a non-food store must place a price sticker (item price) on nearly every item sold. There are four types of violations: missing item price stickers on items, incorrect item price stickers on items, incorrect or missing signs, and overcharging of any advertised or posted price. Violations for overcharging occur whenever a price higher than any represented price (the price on the item, in a circular, the shelf price, etc.) is rung up at the cash register.
WHAT THIS PROPOSAL DOES:
- Creates two options for food stores/departments to disclose prices:
1.) Continue to item price as they presently do;
2.) Annually apply for a waiver from item pricing requirements and utilize scanner technology for price disclosure as non-food stores are presently allowed to do in lieu of item pricing;
- Increases price accuracy for food stores/departments that are granted the waiver by: eliminating human error caused by inaccurate item price stickers, missing stickers that may have fallen off items, item price tampering or discrepancy, etc., and evens the playing field between food stores/departments by granting an option for them to utilize the scanning technology non-food stores presently utilize.
- Establishes an annual review process to be conducted by the Division of Standards and the Secretary of Labor & Workforce Development to gauge any employee job loss or change of employment status resulting from implementation of the item pricing waiver scanning system.
HOW THIS PROPOSAL WORKS:
- Food stores/departments would annually apply for the item pricing waiver and pay a fee depending on the size of the store/department, and meet certain requirements that are mandated in the proposal and regulated by the Division of Standards; similar to what has been done in Connecticut since 2006. The Division shall retain $3.5 million annually raised from fees to enforce these provisions. Any store which acquires the scanning waiver must disclose pricing with no less than one inch high price disclosure at shelf locations
REQUIREMENTS OF THE CONSUMER SCANNER PRICING SYSTEM
- Food stores/departments granted the waiver must have at least 1 consumer scanner for every 5,000 square feet of retail space, with one scanner that produces a tag with the scanned price;
- Food stores/departments that utilize this pricing system must submit a no job loss affidavit and outline its complaint process so existing employees will not suffer any wage, hourly or benefit losses due to the installation and use of this price scanning system;
- If there is any pricing discrepancy between any represented price and the checkout price, the consumer is charged the lowest price, and if the checkout price is not the lowest represented price, the customer is given 1 unit of the item free if $10 or less, or $10 off the item price if it costs over $10.
- Food stores/departments using this system may be inspected once a month or more if a consumer complaint is made or the inspection is intended to verify correction of violations, but scanner systems must be inspected at least once in every 24 month period for scanner accuracy.
VIOLATIONS & FINES
- Violations of any provision, including incorrect pricing, signage, overcharging, etc., is punished by a fine of $200 for each offense ($300 if on sale or loyalty card price inaccuracies), up to a maximum of $2,500 per inspection;
- Scanners must be tested on a pass or fail basis and tested for accuracy with appropriate signage, or constitute a violation of $200 for the 1st failed inspection, $500 for the 2nd and $1,000 for any subsequent failure.
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