Wednesday, September 4, 2024

NYS Office of the Comptroller DiNapoli: Audit Finds Counties Are Not Checking Prices and Scales at Retailers

 

Office of the New York State Comptroller News

An audit of 10 counties found that some did not adequately test the accuracy of retail prices or test scanners, scales and devices used to price, weigh or measure goods at grocery stores, gas stations and other retail locations to make sure that consumers were paying the correct price, New York State Comptroller Thomas P. DiNapoli said today.

“When consumers shop for groceries or buy gas or even mulch, they expect the retailers to be fair and the pricing or weighing devices they use to be accurate. If price scanners or scales are incorrect, or prices don’t match those displayed, it can add up and consumers may end up paying more for everyday items,” DiNapoli said. “Our audit found that counties need to step up their efforts to protect consumers and routinely test these devices and check that consumers are getting what they pay for.”

Testing of retail pricing and weighing devices falls under the jurisdiction of the state Department of Agriculture and Markets which monitors compliance with state law, but counties are charged with inspecting and testing the accuracy of vendor pricing and devices used at local retailers to determine how much a consumer pays.

County weights and measures departments are called on to inspect everything from commercial scales and gas pumps to packaged items at grocery stores. They are authorized to set up procedures for conducting local inspections, including testing scanners to ensure they are charging the correct prices, testing weighing devices, handling consumer complaints, following up with businesses that have deficiencies and taking enforcement actions.

Auditors examined 10 counties: Greene, Jefferson, Madison, Nassau, Niagara, Orange, Seneca, Tompkins, Washington, and Wyoming. They reviewed nearly 1,800 devices and 260 businesses.

Retail sales in New York were more than $260 billion in 2023-24. Approximately $8.3 billion was spent in grocery stores in the counties audited during the audit period of January 2022 to September 2023 (see Figure 1 for a county-by-county breakdown of per person spending in grocery stores).

Key Findings:

  • Nine county departments did not adopt price accuracy testing procedures – only Greene had a local law for price accuracy testing.
  • Five departments did not perform any tests for price accuracy. The two counties that performed regular testing, Jefferson and Niagara, found products scanning at higher prices ranging from 20 to 31% above the marked price. Three counties did some testing but did not have a routine process for doing so.
  • None of the counties completed all the required testing of weighing and measuring devices or maintained complete inspection records. Of the 1,793 devices that auditors reviewed, 430 devices (24%) were not inspected. Reliable systems were not in place to ensure that counties had full lists of all devices that needed testing. Some county officials said they did not have enough staff to do the inspections and others had difficulty reaching business owners to do the inspections.
  • Four departments did not have documentation to determine actions taken on 25 of 74, or 34%, of consumer complaints reviewed. According to state law, a complete record of all complaints received, and the results of those investigated should be maintained.

DiNapoli’s audit noted that pricing and device inspections play a significant role in providing consumer protections at a local level. Consumers are at risk of overpaying for goods when counties do not ensure retail pricing is accurate, and weighing and measuring devices are tested. It recommended that counties develop and implement procedures for periodic price accuracy and testing; perform testing in accordance with Agriculture and Markets law and regulations; and maintain complete records, including an inventory of businesses and consumer complaints.

Audit

Individual Reports


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