State bill would protect consumers at check out counter
After losing their case against Vons grocery store for its alleged overcharging of customers, city officials are pushing for a stronger law to protect consumers.
The Santa Monica City Council is expected tonight to vote on whether it supports a state bill that would close a loophole in current state law that allows retailers to charge a different price than what’s clearly advertised on a sale tag.
“The stores were able to hide behind the fact that the law is not specific,” said Santa Monica City Councilman Kevin McKeown, who will bring the bill to the council tonight. “This came to light in of our local stores in Santa Monica which has a diverse population and some residents have economic challenges... The loophole in the law allows (Vons) to mislead consumers.”
It’s illegal to charge more for an item than the posted price, according to state law. But because the tags include expiration dates, Vons attorneys argue that the posted price is accurate.
Bill AB 1721 would eliminate expiration dates all together by mandating that if there is more than one price listed, the item sells for the lowest amount.
“In our opinion, the law already prohibits misleading sale advertisements,” said Deputy City Attorney Adam Radinsky. “We view 1721 as a clarification of the law.”
“In our opinion, the law already prohibits misleading sale advertisements. We view 1721 as a clarification of the law.” — — ADAM RADINSKY Deputy City Attorney
A Malibu judge recently threw out a court case against Vons levied by Santa Monica City Hall, ruling that the law allows retailers to display an item on sale despite that the offer expired.
The consumer protection unit of the Santa Monica City Attorney’s Office last year filed charges against Pavilions grocery store on Montana Avenue for allegedly charging more at the checkout register for “value plus” items than what was advertised on tags in the aisle.
The judge dismissed the charges in April, saying that once an offer expires, the normal price is technically the posted price and not the “value plus” discounted price, even if it’s still posted in the aisle.
Vons has successfully used the loophole in the law in the past. There have been at least five other trials alleging similar infractions by government agencies that have been either tossed out or found in Vons’ favor. Several more criminal proceedings are currently pending in cities throughout Southern California.
Lawyers for Pavilions admit tags are sometimes left up after the sale expires, but said it’s impossible to keep up with the 10,000 offers made every week. To cover that lapse, expiration dates are printed beneath sale prices.
But McKeown said Vons’ argument is weak.
“If they have enough people to put (the sale tags up) they have enough to take them down,” he said. “
Pavilions faced six counts of charging more than the posted price and one count of false advertising. If convicted, the grocery store could have been charged more than $20,000 in penalties and fines, officials said.
The charges were filed after an October 2001 undercover investigation conducted by Larry Godwin, an L.A. County weights and measure official, revealed that Pavillions had overcharged him.
Godwin, who purchased 20 items, was overcharged on six of them by as much as $2.90 each — including Taglio Primo Brie cheese, Vons brand spaghetti, A&H Peroxicare toothpaste and Hungry Jack Waffles.
The bill, introduced by Assemblyman Paul Koretz (D-West Hollywood), already had passed the state assembly and is in front of the senate rules committee. Because it was amended on July 2 to address the loophole, the bill will have to be approved again by the Assembly and the Senate.
Originally published in the Santa Monica Daily Press print edition on July 8, 2003. Read the original PDF.