Arizona Department of Weights and Measures CORPORATE EDUCATION 99-Cent Stores 99-Cent Stores

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Transcript of Arizona Department of Weights and Measures CORPORATE EDUCATION 99-Cent Stores 99-Cent Stores

PowerPoint PresentationCORPORATE
EDUCATION
Arizona Department of Weights and Measures
These photos were taken at some 99-cent stores in the Phoenix Metro Area.
It doesn’t matter which ones we visited.
We’ve seen these problems
at many different 99-Cent Stores.
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Arizona Department of Weights and Measures
Three of your stores recently failed our inspections because of significant violations of Arizona pricing laws.
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Arizona Department of Weights and Measures
Remember: Civil penalties may be assessed when a stores fails an inspection, though we typically do not impose penalties on the first violations.
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Arizona Department of Weights and Measures
We’re going to show you some photos of problems we found. None of these pictures were staged in any way.
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Arizona Department of Weights and Measures
Keep in mind that these inspections were triggered by complaints from your customers.
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Arizona Department of Weights and Measures
We hope that today’s presentation will help you improve compliance at all 99-Cent Discount stores.
Our goal is to help you comply
with the law, not to collect fines.
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What happens when we conduct an inspection.
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Getting Started
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Arizona Department of Weights and Measures
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Arizona Department of Weights and Measures
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Price Posting
Price Posting: AAC R20-2-302(D)
A retail seller who offers, exposes, or advertises a commodity for sale or rent shall post a definite, plain, and conspicuous price on the commodity or adjacent to where the commodity is displayed. If the price of the commodity is by weight, measure, or count, the retailer shall place the price per weight, measure, or count on the commodity or adjacent to where the commodity is displayed. If a retailer offers a commodity for sale or rent at a price reduced by a percentage or a fixed
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Price Posting: ARS 41-2081(F)4
Except as otherwise provided in this chapter or by rules adopted pursuant to this chapter, any package kept for the purpose of sale or offered or exposed for sale shall bear on the outside of the package a definite, plain and conspicuous declaration of:
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Price Posting: ARS 41-2081(K) & (L)
K. Instead of each package bearing the price as required under subsection F, paragraph 4, the seller may post the price of the package in bold type that measures no less than three-eighths of an inch on the shelf or display at the point of display of the product. If the price on the shelf or display is less than eighteen inches from floor level, the price shall be angled upward from vertical at least fifteen degrees.
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Price Posting Violations:
Arizona Department of Weights and Measures
The first thing we do is go around your store and select 250 items at random to see if they are properly priced.
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These gift-wrap items appear to be 79.99 cents
But how much are the Del Rey napkins?
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Since there’s no other price point…
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‘Top 10 Pricing Tips’:
The following can be found in the Arizona Administrative Code (AAC) R20-2-402 (D):
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Finding the right price CANNOT BE a multiple-choice test.
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Here are some candles being offered for sale
Are they 99.99 cents?
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A.R.S. § 41-2081 (C)
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So in this case, the lowest price will apply
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Here’s another multiple-choice price.
Is this pasta 59 cents a bag…
Or is it 29.99 cents?
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Are the Skittles 49.99 cents?
Or are they 99.99 cents?
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Or are they TWO for 99.99 cents?
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Is this glass plate 2 for 99.99 cents…
Or $1 each?
By now you should be seeing a pattern:
We keep seeing the same problems
Over and over
99-cent Only Stores should follow the “left-to-right” rule…
“Consistency is the key to sign placement. Many retailers use the left to right method for pricing products. When pricing items on a shelf that are priced the same, place the first price sign under the far left most product on the shelf. When a product has a different price make a new sign and place the sign under it. If the product continues for more than three feet, repeat the sign so that your customers don't become confused. It's that easy.”
‘Top 10 Pricing tips, page 7:
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D. The following are not price-posting violations:
1. A price is posted on a shelf where an item is displayed
rather than marked on the item individually.
2. A price is posted on the shelf at the farthest left side of all
items with the same price for up to 3 feet of shelf space.
The price for commodities with the same uniform price
code may be more than three feet from the price posted if
they are all displayed in the same location.
3. A price posted above the highest item in a vertical location
is the price of all items in that location.
R20-2-402.
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Price Verification
Arizona Department of Weights and Measures
A person shall not misrepresent the price of any commodity or service sold or offered, exposed or advertised for sale by weight, measure or count or represent the price in any manner calculated or tending to mislead or in any way deceive a person.
Price Verification: ARS 41-2081(C)
Has to be the price marked on the shelf.
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Arizona Department of Weights and Measures
At ‘Store A’ we “purchased” a case of six one-gallon bottles of water.
There was ONE price-point on the case: 99.99 cents.
We were charged $6 for the case.
That was a $5 OVERCHARGE.
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Arizona Department of Weights and Measures
(This example was from one of your competitors, but it’s similar to what we saw at your store).
99.99 cents
Arizona Department of Weights and Measures
We picked up a mirror that was priced at 59 cents.
But when we went to pay for it, we were charged 99.99…
That was a 40-cent OVERCHARGE
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We also picked up some furniture wipes…
The shelf price was 69.99 cents.
We were charged 99.99 cents.
That was a 30-cent OVERCHARGE
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Arizona Department of Weights and Measures
At ‘Store B,’ we tried to buy them for the marked price of two for 99 cents.
Remember the glasses?
For a $1 overcharge.
It was marked at 59.99 cents each.
We were charged 99.99 cents….
…for a 40-cent OVERCHARGE.
Arizona Department of Weights and Measures
And so it went at three of your stores that we recently inspected.
There were problems in the prices on the shelf….
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But as they say in those late-night infomercials…
WAIT!
If a customer says
what do you do?
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This is another
Pricing Error Policy: ARS 41-2081(M)2
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Arizona Department of Weights and Measures
4. The Department shall issue a warning to a person who
does not have a written price-error policy. The Department
shall impose a $500 civil penalty if the person does
not have a written price-error policy upon reinspection.
R20-2-104. Administrative Enforcement Action
Here are the Inspection Scores
for the three stores we checked:
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Store A:
Price Posting:
UPC Scanning:
88 percent.
Store B:
Price Posting:
UPC Scanning:
96.4 percent.
Store C:
Price Posting:
89.6 percent.
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We found far too many violations during our inspections.
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As a result,
$3,500 TO $5,300!
And remember:
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I. Price verification.
1. The initial inspection of a retail location for price verification is for educational purposes and an enforcement action will not be imposed for a violation identified during the initial inspection.
2. The Department shall issue a stop-sale, stop-use tag to a person who fails a price verification reinspection if the violation cannot be corrected within 30 minutes of the Department completing the reinspection.
a. The Department shall impose a $100 civil penalty per violation on a person who fails a reinspection if the Department finds more than one item at more than its posted price.
b. The Department shall impose a $200 civil penalty per violation on a person who fails a second reinspection. The Department shall increase the per violation civil penalty imposed by $100 for each subsequent reinspection until the violation is corrected.
R20-2-104. Administrative Enforcement Action
J. Price posting.
1. The initial inspection of a retail location for price posting is for educational purposes and an enforcement action will not be imposed for a violation identified during the initial inspection.
2. The Department shall issue a stop-sale, stop-use tag to a person who fails a price posting reinspection if the violation cannot be corrected within 30 minutes of the Department completing the reinspection.
3. The Department shall impose a $50 civil penalty for each inspected lot not priced if a person fails a reinspection with a score of less than 96 percent.
4. The Department shall impose a $100 civil penalty for each inspected lot not priced if a person fails a second reinspection.
5. If the Department receives and substantiates a complaint about a person against whom the Department took an administrative enforcement action under subsection (J)(2) within the 60 days before the date of the complaint, the Department shall issue a stop-sale, stop-use tag and impose a civil penalty that is $100 more than the civil penalty that the Department previously imposed against this person.
R20-2-104. Administrative Enforcement Action
Arizona Department of Weights and Measures
4. The Department shall issue a warning to a person who
does not have a written price-error policy. The Department
shall impose a $500 civil penalty if the person does
not have a written price-error policy upon reinspection.
R20-2-104. Administrative Enforcement Action
IT’S GOOD CUSTOMER SERVICE!
BUT REMEMBER:
not to collect civil penalties
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Questions?