Walmart, Dollar General fined for over-charging Charlotte customers in price-scan errors

North Carolina is seeing a record number of price scanning errors at retailers, according to a state agency, and several Walmart and Dollar General stores in the Charlotte area were fined a combined $42,165 for overcharges.

Three Walmarts and two Dollar General stores in Charlotte, and one Walmart in Belmont, were the shops that were fined, according to an NC Department of Agriculture and Consumer Services’ Standards Division news release.

“It impacts every customer,” Chad Parker, manager of the state agency’s Standards Division Measurement Section, told The Charlotte Observer on Thursday. “There’s potential to be overcharged every time you buy something.”

The state did not detail the total amounts of overcharging by the Charlotte area stores in its news release.

Walmart spokesman Charles Crowson did not comment on why there have been price-scanner errors at the Charlotte area stores.

He said the company encourages customers to let store management and employees know about price irregularities. “We have processes in place to confirm pricing at the register is consistent with what is on store shelves,” Crowson said.

Dollar General officials did not immediately respond to an email for comment Thursday.

Record price scan errors in NC

North Carolina is seeing a record number of complaints and fines for overcharges compared to past years, Parker said.

So far this year, 42 stores have been fined throughout the state during its periodic, unannounced checks, according to the agency. The majority of the stores are Walmart and Dollar General, but also Advance Auto, CVS Pharmacy, Family Dollar, Ingles and Target, agency reports show.

In four months, the state Standards Division has fined businesses about $200,000 compared to a typical annual average of up to $50,000 for price-scanner errors, Parker said.

“We’re way beyond where our normal fines are,” he said.

Most retail store prices are downloaded digitally from a corporate office, then employees manually change shelf tags, Parker said. But due to rising inflation on almost every product, a company that might usually change 1,000 to 2,000 shelf tags now might have to change 10,000 to 20,000 a week.

“Obviously, that’s going to be much more challenging to do,” Parker said.

Charlotte-area stores fined

The six stores in the Charlotte region fined are:

▪ Walmart at 701 Hawley Ave., Belmont, was fined $2,685. An initial inspection in November 2021 found a 10% error rate based on five overcharges in a 50-item lot. A follow-up inspection in December found a 4.67% error rate based on 14 overcharges in a 300-item lot. The store passed inspection in February. A 2% error rate or below is considered a passing score.

▪ Dollar General at 7322 The Plaza, Charlotte, paid $10,000. An initial inspection in November 2021 found a 40% error rate based on 20 overcharges in a 50-item lot. A follow-up inspection in December found a 23.67% error rate based on 71 overcharges in a 300-item lot. A third inspection in February found a 16.33% error rate based on 59 overcharges in a 300-item lot. The store will be re-inspected.

▪ Dollar General at 10018 Albemarle Road, Charlotte, paid $10,000. An initial inspection in November 2021 found a 24% error rate based on 12 overcharges in a 50-item lot. A follow-up inspection in December 2021 found a 20.67% error rate based on 62 overcharges in a 300-item lot. A third inspection in February found a 20% error rate based on 60 overcharges in a 300-item lot. The store will be re-inspected.

▪ Walmart at 7735 North Tryon St., Charlotte, paid $9,785. An initial inspection in October 2021 found a 7% error rate based on seven overcharges in a 100-item lot. A follow-up inspection in November found a 7% error rate based on 21 overcharges in a 300-item lot. A third inspection in January found a 9.33% error rate based on 28 overcharges in a 300-item lot. The store will be re-inspected.

▪ Walmart at 3209 Pineville-Matthews Road, Charlotte, paid $6,185. An initial inspection in October 2021 found a 12% error rate based on six overcharges in a 50-item lot. A follow-up inspection in November found a 5.67% error rate based on 17 overcharges in a 300-item lot. A third inspection in February found a 9.33& error rate based on 28 overcharges in a 300-item lot. The store will be re-inspected.

▪ Walmart at 3240 Wilkinson Blvd., Charlotte, paid $3,510 in fines. An initial inspection in October 2021 found a 3% error rate based on three overcharges in a 100-item lot. A follow-up inspection in December found a 6.33% error rate based on 19 overcharges in a 300-item lot. The store passed inspection in February.

How inspections work in NC

Stores are fined for failing to meet the 2% or less price scanning error rate, according to the state agency.

Parker said they scan a number of products in the store.

If a store has more than a 2% error rate on overcharges, inspectors talk with the store manager and make a follow-up inspection later, according to the state agency.

Store are penalized after failing during the follow-up inspection, according to the news release. Stores are re-inspected every 60 days until meeting the 2%-or-less error rate and could face additional fines.

Undercharges are also reported but don’t count against a store.

What to do if you find a price scan error?

The state Standards Division has seen “a significant increase” in price scanner errors as stores struggle with staffing shortages due to the COVID pandemic, NC Agriculture Commissioner Steve Troxler said in a statement.

“It is always a good practice for consumers to check their receipts as well as the price on the shelf to make sure that they are paying the correct amount,” he stated.

Customers who see price scanner errors on their receipt may file a complaint with the Standards Division. Call 984-236-4750.

This story was originally published April 22, 2022 at 6:00 AM with the headline "Walmart, Dollar General fined for over-charging Charlotte customers in price-scan errors."