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Shoppers short-changed: survey

March 9, 2000

BY FRAN SPIELMAN AND SANDRA GUY STAFF REPORTERS

More than half of Chicago retailers overcharged their customers because of persistent problems with electronic scanning devices, an annual survey by the city's Department of Consumer Services reveals.

Of the 420 retailers surveyed in the last year, 218 stores--or 52 percent--overcharged consumers from a penny to $15, in many cases because advertised sale items were scanned at the checkout counter at the regular price.

Stunning as they are, results of the city's undercover investigation are a marked improvement from the "70-to-80 percent" failure rate uncovered during 1989, Mayor Daley's first year in office.

"There is no indication that any of this is intentional," allowed Consumer Services Commissioner Caroline Shoenberger. "However, people are aware there is a problem and, after 11 years, we had hoped for greater progress. In short, not enough has been done to correct the problem."

The Radio Shack at 6248 N. Western rang up the biggest overcharge, when a stereo speaker advertised for $14.99 was scanned at $29.99.

Walgreen's and Osco Drug Stores, the city's largest pharmacy chains, were the most frequent offenders, with scanning violations at stores across the city. Multiple overcharges also occurred at Jewel Foods, Dominick's Finer Foods, K-mart and Super Trak Corp.

A team of undercover investigators visited each store posing as customers, filling their shopping carts with 50 items. If two or more items scanned higher than the advertised price, the store failed inspection and was cited.

The stores face penalties ranging from $50 to $500 per overcharge, under a new system of graduated fines recently imposed by City Hall.

Shoenberger blamed the scanning errors on an array of problems ranging from improperly programmed computers and outdated shelf tags to lack of quality control and multiple sales prices.

Local retailers said Wednesday that they take the scanning errors seriously and are implementing strict procedures to guard against mistakes.

A state-of-the-art electronic system of "checks and balances" is being installed in all Dominick's stores to ensure correct pricing, said Andrea Brands, vice president of public affairs for the chain, which is moving its headquarters this week from Northlake to Oak Brook.

Jewel-Osco, Melrose Park, maintains a policy that if an item scans differently than its shelf price, the customer gets that item for free, said spokesperson Karen Ramos.

"Each one of our stores has a person in charge of scanning, who not only puts through price changes, but audits sections of the store each week to check the scanning accuracy," Ramos said. "But when you have in excess of 50,000 different items in a store, errors can occur."

Walgreen's also checks every advertised price in one store in each of its eight districts in Chicago every time a new advertisement comes out, he said.

http://www.suntimes.com/output/news/shop09.html

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-- Dee360Degree (Dee360Degree@aol.com), March 09, 2000