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CORPORATE EDUCATION

CORPORATE EDUCATION. 99-Cent Stores. These photos were taken at some 99-cent stores in the Phoenix Metro Area. It doesn’t matter which ones we visited. We’ve seen these problems at many different 99-Cent Stores.

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CORPORATE EDUCATION

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  1. CORPORATE EDUCATION 99-Cent Stores

  2. These photos were taken at some 99-cent stores in the Phoenix Metro Area.It doesn’t matter which ones we visited. We’ve seen these problems at many different 99-Cent Stores.

  3. Three of your stores recently failed our inspections because of significant violations of Arizona pricing laws. Because of those violations, 99-Cent Discount Stores faces a number of civil penalties.

  4. Remember: Civil penalties may be assessed when a stores fails an inspection, though we typically do not impose penalties on the first violations. Civil penalties WILL be imposed if further re-inspections find violations. If they STILL aren’t corrected the size of those penalties will escalate every time we find violations.

  5. We’re going to show you some photos of problems we found. None of these pictures were staged in any way. Later on, we’ll also take some of your top managers on a walking tour of a store to point out the types of problems we see.

  6. Keep in mind that these inspections were triggered by complaints from your customers. When your customers complain, they become our customers – and we follow up on every customer complaint we receive.

  7. We hope that today’s presentation will help you improve compliance at all 99-Cent Discount stores. Our goal is to help you comply with the law, not to collect fines.

  8. What happens when we conduct an inspection.

  9. Getting Started First, the Investigator presents his or her documents and goes over the Regulatory Bill of Rights.

  10. This describes the inspection process. The on-site representative will be asked to sign this form to indicate everything was explained, and they understand what will happen.

  11. Then we conduct the inspection. Two inspections - Price Posting and UPC - are done together…

  12. Price Posting

  13. Price Posting: AAC R20-2-302(D) A retail seller who offers, exposes, or advertises a commodity for sale or rent shall post a definite, plain, and conspicuous price on the commodity or adjacent to where the commodity is displayed. If the price of the commodity is by weight, measure, or count, the retailer shall place the price per weight, measure, or count on the commodity or adjacent to where the commodity is displayed. If a retailer offers a commodity for sale or rent at a price reduced by a percentage or a fixed amount from a previously offered price, the retailer shall place the reduction or reduced price on the commodity or adjacent to where the commodity is displayed.

  14. Price Posting: ARS 41-2081(F)4 Except as otherwise provided in this chapter or by rules adopted pursuant to this chapter, any package kept for the purpose of sale or offered or exposed for sale shall bear on the outside of the package a definite, plain and conspicuous declaration of: The price, except as provided in subsections K and L.

  15. Price Posting: ARS 41-2081(K) & (L) K. Instead of each package bearing the price as required under subsection F, paragraph 4, the seller may post the price of the package in bold type that measures no less than three-eighths of an inch on the shelf or display at the point of display of the product. If the price on the shelf or display is less than eighteen inches from floor level, the price shall be angled upward from vertical at least fifteen degrees. L. If the package is offered for sale at a price reduced by a percentage or a fixed amount from a previously offered price, the reduction shall be displayed at the point of display of the package in the manner required by this section.

  16. Price Posting Violations: How Much Is This?

  17. The first thing we do is go around your store and select 250 items at random to see if they are properly priced. We’ve been finding a lot of pricing errors at 99-Cent Discount Stores.

  18. Let’s start with these shelves. These gift-wrap items appear to be 79.99 cents But how much are the Del Rey napkins?

  19. Since there’s no other price point… We have to assume they’re ALSO 79.99 cents each.

  20. ‘Top 10 Pricing Tips’: The following can be found in the Arizona Administrative Code (AAC) R20-2-402 (D): “A price posted above the highest item in a vertical location is the price of all items in that location.”

  21. Finding the right price CANNOT BE a multiple-choice test.

  22. Here are some candles being offered for sale Or are they TWO for 99.99 cents? Are they 99.99 cents?

  23. A.R.S. § 41-2081 (C) “A person shall not misrepresent the price of any commodity or service sold or offered … or represent the price in any manner calculated or tending to mislead or in any way deceive a person.”

  24. So in this case, the lowest price will apply

  25. Here’s another multiple-choice price. Is this pasta 59 cents a bag… Or is it 29.99 cents?

  26. Are the Skittles 49.99 cents? Or are they 99.99 cents?

  27. Or are they TWO for 99.99 cents? Are these glasses 99.99 cents each?

  28. Is this glass plate 2 for 99.99 cents… Or $1 each?

  29. By now you should be seeing a pattern: We keep seeing the same problems Over and over At all your stores!

  30. 99-cent Only Stores should follow the “left-to-right” rule… ‘Top 10 Pricing tips, page 7: “Consistency is the key to sign placement. Many retailers use the left to right method for pricing products. When pricing items on a shelf that are priced the same, place the first price sign under the far left most product on the shelf.When a product has a different price make a new sign and place the sign under it. If the product continues for more than three feet, repeat the sign so that your customers don't become confused. It's that easy.”

  31. Here are some more pricing tips R20-2-402. Price-posting Inspection Procedure and Violation Exceptions D. The following are not price-posting violations: 1. A price is posted on a shelf where an item is displayed rather than marked on the item individually. 2. A price is posted on the shelf at the farthest left side of all items with the same price for up to 3 feet of shelf space. The price for commodities with the same uniform price code may be more than three feet from the price posted if they are all displayed in the same location. 3. A price posted above the highest item in a vertical location is the price of all items in that location.

  32. Price Verification

  33. Price Verification: ARS 41-2081(C) A person shall not misrepresent the price of any commodity or service sold or offered, exposed or advertised for sale by weight, measure or count or represent the price in any manner calculated or tending to mislead or in any way deceive a person.

  34. The Price Charged At The Register Has to be the price marked on the shelf.

  35. At ‘Store A’ we “purchased” a case of six one-gallon bottles of water. There was ONE price-point on the case: 99.99 cents. We were charged $6 for the case. That was a $5 OVERCHARGE.

  36. (This example was from one of your competitors, but it’s similar to what we saw at your store). 99.99 cents

  37. We picked up a mirror that was priced at 59 cents. But when we went to pay for it, we were charged 99.99… That was a 40-cent OVERCHARGE

  38. We also picked up some furniture wipes… The shelf price was 69.99 cents. We were charged 99.99 cents. That was a 30-cent OVERCHARGE

  39. Remember the glasses? At ‘Store B,’ we tried to buy them for the marked price of two for 99 cents. But they charged us 99.99 cents each… For a $1 overcharge.

  40. And we picked up scouring powder. It was marked at 59.99 cents each. We were charged 99.99 cents…. …for a 40-cent OVERCHARGE.

  41. And so it went at three of your stores that we recently inspected. There were problems in the prices on the shelf…. …and we were charged the wrong price far too often.

  42. But as they say in those late-night infomercials… WAIT! THERE’S MORE!

  43. If a customer says "Hey, that's not the price on the shelf!"  what do you do? What is the 99-cents only price-error policy??

  44. None of your stores had one.

  45. This is another significant violation

  46. Pricing Error Policy: ARS 41-2081(M)2 On the request of a consumer, a retail seller shall provide a written statement of the retail seller's policies regarding errors in pricing.

  47. 4. The Department shall issue a warning to a person who does not have a written price-error policy. The Department shall impose a $500 civil penaltyif the person does not have a written price-error policy upon reinspection. R20-2-104. Administrative Enforcement Action I. Price verification.

  48. Here are the Inspection Scores for the three stores we checked:

  49. Store A: Price Posting: 88 percent. 30 PRICING ERRORS ESTIMATED -* CIVIL PENALTIES: Fail UPC Scanning: 92 percent. 4 OVERCHARGES Fail $300 T0 $1,200 No price-error policy Fail:

  50. Store B: Price Posting: 96.4 percent. 9 PRICING ERRORS ESTIMATED -* CIVIL PENALTIES: Fail UPC Scanning: 96 percent. 2 OVERCHARGES Fail $600 to $1,100 No price-error policy Fail

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