NYC Pricing Investigation Targets Whole Foods’ Pre-Packaged Foods
The New York City Department of Consumer Affairs (DCA) has alleged
that Whole Foods Market, Inc. “routinely overstated the weights of
its prepackaged products—including meats, dairy and baked goods—
resulting in customers being overcharged.” According to a June 24, 2015,
press release, DCA found mislabeled weights on 80 different types of
products sold at New York City locations, with 89 percent purportedly
failing to meet federal standards “for the maximum amount that an
individual package can deviate from the actual weight.”
“The overcharges ranged from $0.80 for a package of pecan panko to
$14.84 for a package of coconut shrimp,” claims the agency. “The fine for
falsely labeling a package is as much as $950 for the first violation and up
to $1,700 for a subsequent violation. The potential number of violations
that Whole Foods faces for all pre-packaged goods in the NYC stores is in
the thousands.”
In particular, DCA noted that packages of nuts, berries, vegetables,
and seafood were often labeled “with exactly the same weight when
it would be practically impossible for all of the packages to weigh the
same amount.” The agency also cited similar issues uncovered by a 2012
investigation of California stores that led to a civil consumer protection
case filed by city attorneys for Santa Monica, Los Angeles and San Diego.
Additional details about the settlement of that case appear in Issue 528
of this Update.
“It is unacceptable that New Yorkers shopping for a summer BBQ or
who grab something to eat from the self-service aisles at New York City’s
Whole Foods stores have a good chance of being overcharged,” DCA
Commissioner Julie Menin is quoted as saying. “Our inspectors tell me
this is the worst case of mislabeling they have seen in their careers, which
DCA and New Yorkers will not tolerate. As a large chain grocery store,
Whole Foods has the money and resources to ensure greater accuracy
and to correct what appears to be a widespread problem—the city’s shoppers
deserve to be correctly charged.”
Issue 570
