WFM: Whole Foods to Pay $800K Fine for Overcharging Customers

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Upscale grocery chain Whole Foods Market (WFM) has been hit with fines for charging consumers too much in the Golden State.

Whole Foods MarketAn investigation found that chain violated California law by charging customers for prepared foods by the item instead of per pound. State officials also determined that items sold at WFM stores weighed less than the labels stated and that container weights were not subtracted from salad bar purchases, as required by law, the Associated Press notes.

In a statement, WFM said that prices at its stores were accurate for 98% of items and that it had cooperated with the investigation.

WFM has been fined around $800,000 for the violations. Part of that money will be divided among the city attorneys of San Diego, Santa Monica and Los Angeles. Another $100,000 will be given to a weights and measurements enforcement fund. WFM will also have to pay for the investigation.

All 74 WFM stores in California will have to hire pricing accuracy managers and be subjected to quarterly pricing audits under a five-year agreement between the grocer and state officials.

In Wednesday morning trading, WFM stock climbed modestly.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/06/wfm-whole-foods-pay-800k-fine-overcharging-customers/.

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