Marin County Officials: County Government Combats Pricing Fraud

Press release from the Marin County Government:

March 09, 2021

County Government Combats Pricing Fraud

New findings from Department of Agriculture, Weights and Measures

San Rafael, CA – The Marin County Department of Agriculture / Weights and Measures (AWMs) doesn’t routinely work very closely with the District Attorney’s office. But when the COVID-19 pandemic got underway a year ago, the two departments were in regular contact because of a sharp increase in calls about potential pricing fraud.

That was back when frenzied shoppers were practically crawling on top of each other to grasp coveted packages of toilet paper and hand sanitizer.

The report was presented March 9 to the Marin County Board of Supervisors by Acting AWMs Agricultural Commissioner Stefan Parnay and Inspector Raoul Wertz. Parnay said most of the price gouging complaints were related to the April 3, 2020, statewide order from Governor Gavin Newsom that prohibited businesses from pricing items with more than a 10% price increase from what they were charging two months earlier. That included emergency and medical supplies such as face coverings.

“It felt good for us to ensure people were not getting gouged, and if they were, to immediately stop the consumer harm,” Parnay said. “In the early days of the pandemic and the sheltering orders, we responded to reports of abrupt price increases all over the county that consumers had noticed. Most were unsubstantiated, but it was a new frontier for us to inspect stores’ pricing for compliance with a state-wide emergency order from the governor. Employees from our two departments worked together to assist the community during this time of economic disruption and hardship to ensure consumers were being protected.”

In fact, COVID-19 resulted in a sharp dive in routine inspections. They went from 442 in 2019 to 345 in 2020, a 22% decline as inspectors complied with COVID workplace safety precautions. However, the number of consumer pricing complaints were up 40%, from 23 to 32. The percentage of items found to be priced higher than they should was 4.1%, a 71% increase from a year earlier.

“Many stores offer a price accuracy guarantee and will give you something, such as a $5 gift card, if you are charged an incorrect price compared to how it’s advertised,” said inspector Raoul Wertz. “Often that guarantee is a required part of a settlement to a lawsuit they settled over price accuracy, so be wary and always check your receipts. By law, customers are entitled to the lowest advertised or posted price for items offered for sale by a store.”

This marked the fifth consecutive year the AWMs staff produced a Consumer Protection Report. In a side-by-side comparison of the 2016 and 2020 reports, there has been an 80.5% increase in notices of violation issued, a 263% increase in items found to be overcharged to customers, a 162% increase in items found undercharged to customers, and a 13.7% decrease in businesses compliant with price accuracy requirements.

The department’s weights and measures inspection staff has only 3.3 full-time positions, but employees spent 6,634 hours serving t­he public’s interest by ensuring accuracy and equity in the marke­­­­tplace and protecting the health and welfare of Marin residents. Staff performed 8,489 inspections to ensure accuracy of measuring devices and checking the prices charged to consumers.

“While much of our workforce transitioned to telework, our staff conducted hundreds of site inspections safely while utilizing health and workplace precautions,” Parnay said. “And like other departments, our staff contributed to the important disaster service work that serves Marin during this public health emergency. First and foremost is keeping the team healthy and safe so they can continue to do this vital work.”

Agriculture, Weights and Measures maintains a consumer help line at 415-473-7888. If a consumer believes he or she has been overcharged, becomes aware of posted prices not being honored at the check-out stand, or is unable to view the prices of items when a purchase is being rung up, please call the help line immediately so staff can investigate.

Want to watch out for yourself and others more closely? There are helpful consumer tips on the Ag, Weights & Measures website.

This press release was produced by the Marin County Government. The views expressed here are the author’s own.