10,000 offers made each week. To cover that lapse, expiration dates are printed beneath sale prices, they contended.
Malibu Superior Court Judge Lawrence Mira dismissed City Hall’s case against Vons Inc., Pavilions’ parent company, saying that once an offer expires, the normal price is technically the posted price and not the “value plus” discounted price, even if it is still posted.
The law already made it a crime for stores to charge more than the posted price. However, many stores have been leaving up sale price tags (often in the form of “Club” specials) on items after its respective sale had expired. As a result, consumers were being charged full price even though a bold-type sale sign remained posted.
City Hall lawyers claim it’s a misleading tactic, since shoppers often don’t read the fine print and, at any given time, most supermarkets have literally thousands of different items on sale with differing expiration dates.
The bill became necessary after judges ruled in favor of Vons companies in several Southland trials. Vons had argued that it could charge regular price for items even though the sale prices were still displayed since the sale tag included an expiration date. In recent months, more and more stores had begun relying on that tactic to avoid honoring sale prices, city attorneys say.
The Santa Monica City Attorney’s Consumer Protection Unit worked closely on the drafting and development of the bill, which was authored by Assemblyman Paul Koretz of West Hollywood.
“Most consumers don’t even know when they’re overcharged at the supermarket since there are usually so many items in their cart and it’s impossible to keep track of all the different sale prices,” said Deputy City Attorney Adam Radinsky. “The last thing we need is stores charging regular price when the sale signs are still up.”
The Santa Monica City Attorney’s Office has prosecuted dozens of large chain stores in recent years for charging more than the posted price.
Violations of the law are misdemeanors if the overcharge is more than $1. Stores are subject to maximum fines and penalties of more than $3,000 for each violation.
The new law goes into effect on Jan. 1.
Originally published in the Santa Monica Daily Press print edition on October 6, 2004. Read the original PDF.