Whole Food Overpricing After an investigation that took a year, Whole Foods (WFM) will pay $800,000 in penalties and fees in connection with overcharging customers in California. The pricing discrepancies violated consumer protection laws regarding false advertising and unfair competition, prosecutors said.
Problems included failing to deduct the weight of containers when ringing up fresh food, putting smaller amounts into packages than the weight stated on the label, and selling items by the piece instead of by the pound, as required by law
Whole Foods must pay $210,000 to each of the city attorneys of Santa Monica, Los Angeles and San Diego, who brought the case against the retailer as well as reimburse county and state agencies that conducted the pricing investigation and pay $100,000 to a weights and measurements enforcement fund.
Whole Foods issued a statement noting that the company cooperated with the investigation and prices were accurate 98 percent of the time.
Whole Foods, which operates 74 stores in the California, agreed to a five-year court injunction. Under the injunction, the company is required to conduct random audits, charge accurate prices, and appoint employees to oversee pricing accuracy statewide and also within each store in California.
Apparently state and local governments split the money and consumers get nothing.
Whole Foods Market, Inc. (WFM) closed down fractionally today to $38.95 on average volume.