Walmart 'Sugar Tax' Discovered to Be False, Retailer Was Charging Customers Extra
Walmart's sugar tax ended up costing the retailer $66,000 after it was discovered to be levying an unnecessary and illegal cost on its customers. The giant retailer's New York stores were selling cans of Coca-Cola to its customers at a markup and blaming it on a non-existent state tax.
The Walmart sugar tax was discovered this summer when its New York customers would come into the stores looking for a pack of Coca-Cola cans for just $3. When the item rang up as $3.50, one retailer in Buffalo said that it was because of a "sugar tax," while others across the state said that the national sale on the colas didn't apply in New York.
Both instances were in violation of the New York state law that says advertisers are not allowed to charge more for an item than is advertised through print or media, according to the Attorney General's office.
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Customers who were suspicious of the Wal-Mart employees' explanations reported the retailer to authorities, and New York Attorney General Eric Schneiderman brought the issue to the company's attention.
Before the issue was caught, 66,000 cans of the Coca-Cola were sold at the inflated price in 117 stores, so Wal-Mart agreed to pay $66,000 in restitution to settle the investigation. They also lowered the Coca-Cola cans prices to its normal price on June 12.
Now Wal-Mart is reviewing their promotional pricing policy to make sure that the issue does not arise again. They are also checking their internal reporting procedures to see how the inflated prices could have gone undetected by the company, according to CNN.
