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Whole Foods to pay $500K to settle overcharging allegations
The store some call “Whole Paycheck” for its high pricing of organic grocery products has been ordered to pay $500,000 to the City of NY.
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As part of the settlement, the Department of Consumer Affairs said Whole Foods must conduct quarterly in-store audits at all its New York City stores.
In the event that DCA inspectors identify mislabeled pre-packaged foods at a Whole Foods Store, that store must immediately remove all mislabeled products and, within 15 days, Whole Foods must check the accuracy of that product’s pricing, as well as 20 additional products from the same department, at all New York City stores.
The overcharges ranged from 80 cents for a package of pecan panko to $14.84 for a package of coconut shrimp, according to the agency, which tested 80 types of food and found that all of them had mislabeled weight. The bad publicity reduced sales for the company and led to co-CEOs John Mackey and Walter Robb apologizing in an online video.
Whole Foods will pay $500,000 to “put the issue behind us”, it said in a statement Monday.
Mackey had previously expressed bewilderment over why “Whole Foods was singled out for this attention”, saying that he doesn’t think the company’s track record on the matter is any different from other supermarkets.
Whole Foods’ spokesman, Michael Silverman said over the summer that they will train workers promise the costumers to give them the products if found out that it was overpriced. In the end they agreed with $500K to end everything and bury it. The fee will go to the city’s budget according to the Department of Consumer Affairs.
Stay on topic – This helps keep the thread focused on the discussion at hand.
A Whole Foods was selling a bottle of water with three stalks of raw asparagus inside for $5.99 and calling it “Asparagus Water”.
The Daily News learned that the city had launched a probe of Whole Foods Markets after investigators nabbed the chain for routinely overcharging customers on groceries during dozens of inspections dating back to at least 2010.
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“We actually don’t sell asparagus water in our stores”, Whole Foods Market Senior Media Relations Specialist Liz Burkhart told CBS News at the time. “It was made incorrectly and has since been removed”.