Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Whole Foods Reaches $800K Settlement In Overcharging Case

RELATED NEWS
Trade WFMI now with 

Grocery chain Whole Foods Market, Inc. (WFM: Quote) on Tuesday reached an $800,000 settlement with City Attorney's of Los Angeles Santa Monica and San Diego in a statewide pricing inaccuracy case. The company has agreed to pay the amount and to adhere to sweeping court injunction.

"We're taking action to assure consumers get what they pay for. No consumer should ever be overcharged by their local market," Los Angeles City Attorney Mike Feuer said in a statement.

Austin, Texas-based Whole Foods reached a settlement after investigations by state and county Weights and Measures inspector's unearthed widespread pricing violations throughout the state of California.

Whole Foods was seen to be charging more than the advertised price for a wide variety of food items.

It was charged of failing to deduct the weight of containers at the salad bar and hot bar, selling items by piece rather than by the pound, and also selling packaged items with lesser weight than stated on the label.

The settlement will see Whole Foods paying $798,394 in civil penalties and costs, of which the Los Angeles City Attorney's Office will receive $210,000.

The total settlement includes $630,000 in civil penalties, $100,000 paid to a statewide consumer protection trust fund, and $68,394 in investigative costs

As part of the settlement, Whole Foods has also agreed to appoint two "state coordinators" to oversee pricing accuracy at Whole Foods stores throughout California, as well as charge accurate prices and provide the advertised weight on all items.

Further, it has agreed to designate an employee at every store in the state who will be responsible to assure pricing accuracy throughout the store. It will also conduct random audits at each of its stores, four times per year, to check compliance to pricing and weight issues.

The settlement covers all 74 Whole Foods stores in the state of California, including ten in the city of Los Angeles.

WFM closed Tuesday's regular trading session at $38.95, down $0.29 or 0.74% on a volume of 7.02 million shares.

Register
To receive FREE breaking news email alerts for Whole Foods Market Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The U.K. economy grew more than estimated in the second quarter and the current account deficit widened from the first quarter, the Office for National Statistics said Tuesday. Gross domestic product grew 0.9 percent sequentially, up from the prior estimate of 0.8 percent. The annual growth was confirmed at 3.2 percent. Eurozone inflation slowed in September, as expected, to the lowest since late 2009 and the unemployment rate remained stable at a double digit level in August putting pressure on the European Central Bank to launch a full-blown easing. Inflation came in at 0.3 percent, slower than August's 0.4 percent. This was the lowest since October 2009, when prices fell 0.1 percent. Chinese authorities on Tuesday eased some rules for mortgages for buying a second home, in a bid to boost the housing market. The People's Bank of China and the China Banking Regulatory Commission said in a joint statement that buyers who already own one apartment, but have paid off the mortgage...
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.