Wal-Mart, dubbed as the biggest retailer in the world, charged $3.50 for 12 packs of Coca-Cola instead of the advertised amount of $3.00 during the store's promotions for the year. The extra charging occurred in the store's New York branches where customers had complained that the store staff explained the extra charge as a result of a sugar tax. In reality, this type of tax is non-existent.
The 50 cents markup, which shows a 16 percent increase in the originally advertised promotional price, is a clear indication that the store broke a state law which prohibits retailers from charging customers a price other than what it has advertised. At the store's Buffalo branch, customers complained of being charged higher than the $3 advertised price. Apart from being told that the increase is a result of a sugar tax, others complained of being told that the sale is not applicable in New York.
"There has to be one set of rules for everyone, no matter how rich or how powerful, and that is why our office must ensure that even the largest corporations cannot advertise one price and then charge a higher one to New Yorkers," said New York Attorney General Eric Schneiderman.
An agreement was eventually agreed upon by the retailer which has its headquarters located in Bentonville, Arkansas. Wal-Mart has agreed to pay the penalty amount of $66,000 and has promised to improve practices that will prevent the company from committing over-charging of their products in the future. According to the office of the attorney general, the cash registers in Wal-Mart were not programmed to identify the advertised promotional price. Wal-Mart had so far neither conceded nor denied the findings made by the attorney general's office.
The national sale was launched by the retailer in June. Since then, it had been advertising the sale of its Coca-Cola products at $3 for a pack of 12. This advertising practice is said to have been applied across all the 117 Wal-Mart stores that are sprawled in New York.
Customers also recalled the similar sale that was run by Wal-Mart in March. Allegedly, the retail store sold 66,000 packs of Coca-Cola that come in 12 pieces per pack. The products were sold to New York customers at an inflated price.
Wal-Mart has already made the necessary price adjustments after the issue was brought to their attention by the state attorney general. The $66,000 penalty amount is reached based on the sold 66,000 cases of Coca-Cola to New York shoppers at a higher price. A spokesman from Wal-Mart sends his company's apologies to customers and adds that they are now taking the necessary measures to ensure that the company adheres to proper promotional pricing in the future.
