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From our allies over at Wake Up Walmart:

WakeUpWalmart.com and a coalition of supporters today launched a national week of action against Walmart’s irresponsible sick leave policy.  WakeUpWalmart.com will hold events at 50 Walmart stores across the country to deliver ‘demerits’ and a letter to local store managers calling on Walmart to change its unfair and harmful sick day policy.

Last fall the New York Times article Lack of Sick Days May Worsen Flu Pandemic, exposed Walmart’s track record of giving employees “demerits” that can lead to termination when they call in sick.  A number of workers across the country reported retaliation and termination from Walmart due to illness.

Beatrice Parker, a former greeter at Walmart # 3371 in Charlotte, N.C., felt forced to resign due to Walmart’s sick leave policy after suffering from a bladder infection caused by not being given bathroom breaks on the job.

In a new video released today, Parker describes abuse and age discrimination and asks Walmart CEO Mike Duke, “If you don’t have any or can’t have any concern for the way I was treated in this Walmart, please have some for the people who work there, especially the older people.” You can watch the video on the right of this post.

Walmart’s policies and actions create a working environment where employees feel they are faced with a choice between spreading the flu and keeping their job.  Walmart deserves public demerits for sick leave policies that put the public at risk and make its employees sicker.

The Demerit Walmart program is supported by leading advocacy groups such as the MomsRising.org and the Labor Partnership for Working Families.

“MomsRising is extremely concerned by news reports that Walmart associates risk receiving demerits (which can lead to termination) for taking earned paid sick days,” said MomsRising Executive Director Kristin Rowe-Finkbeiner.  “Such a practice is a public health hazard and a threat to the economic security of Walmart associates and their families. We call on Walmart to publicly respond to these charges and immediately end any ongoing practice of issuing demerits .”

Walmart is America’s largest private employer and sets the standard for workplaces in the retail industry.  Walmart associates should not be afraid of losing their jobs simply because they are too sick to help customers.  Walmart can and should live up to the highest possible workplace standards. 

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According to the Courthouse News Service, Wal-Mart has been using a sales tax loophole to swindle customers out of a full refund on returned merchandise. Basically, the lawsuit claims that when customers have purchased items at a store that charges a particular sales tax, and have returned the item at a store in an area with a lower sales tax, Wal-Mart has refused to return the difference in paid tax if the rate at the point of sale is higher than that at the store where the merchandise is being returned.

(Plaintiff John) Whitewall says he bought a Blue Ray disc player from Wal-Mart’s store in Collinsville, Ill. for $214.04, at an 8.1 percent sales tax rate. But when he returned the player to Wal-Mart’s store in Glen Carbon, Ill., he received only $211.56, because that store has a 6.85 percent sales tax.

This seems like such a small issue - $3.50 or $4 dollars on a sale - but multiplied over thousands of transactions it has the potential to add up. Wal-Mart has had similar issues with returns before - late last year the Connecticut Attorney General began looking into Wal-Mart after charges began surfacing that major retailers (most notably Wal-Mart) were violating state law by charging a second sales tax when merchandise paid for with cash was exchanged. You can refresh your memory on that story here and here.

The lawsuit was filed as a national class action, and we’ll continue checking for updates. You can read the complaint here. The lawsuit is seeking actual damages, plus any additional damages the court would deem appropriate - read: punitive damages in an amount high enough to make Wal-Mart consider changing its practices.

It’s unclear if the plaintiff has examples beyond his own - the complaint mentions only the Blu-ray player purchase - but I have to believe they have additional plaintiffs. A class action based on one case is, after all, not really in much danger of moving forward as a class action.

Class Sues Wal-Mart Over Returns Policy [Courthouse News Service]

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“Underpaid, disempowered Wal-Mart employees have a tough time staying chipper these days — and they pass along their misery to the company’s customers.”

So begins the entry for Wal-Mart in Business Management Daily’s list of the five worst companies for customer service. In compiling its list BMD interviewed several sources, including Service Quality Institute president John Tschohl and David VanAmburg, managing director of the American Customer Satisfaction Index. The worst offenders, in order:

1. Bank of America; 2. Comcast; 3. ebay; 4. Wal-Mart; 5. U.S. Airways

So where exactly does Wal-mart come up short?

“Wal-Mart built its business on customer service, but they’re in the sink now,” Tschohl contends. “The stores are ugly, and they attract the people with the least amount of money who are willing to put up with bad service.” Adds David VanAmburg, managing director of the American Customer Satisfaction Index: “They are at the top of our list when it comes to value, but near the bottom when it comes to service.”

The key, of course, is that you would think this problem would have an easy solution. Treating your employees better through better wages, better/more affordable health benefits, consistent scheduling, ending discriminatory practices and pay theft...well, you get the picture...would all lead to a more content work staff. And what happens when you have happy employees? That’s right, happy customers.

“It’s a matter of treating your employees better than anybody else does and offering world-class customer service,” explains a manager of a Les Schwab Store in Concord, Calif. “That is what keeps your business growing.”

That will be something for Wal-Mart to keep in mind as the economy slowly rebounds. As more people return to their previous shopping habits - and more importantly, their previous shopping locals - Wal-Mart could see its sales figures returning to the flat numbers from pre-recession days. Is it really THAT hard to show your employees a little love??

Failing grades: The 5 worst companies for customer service [Business Management Daily]

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Wal-Mart has agreed to pay nearly $2 million and improve safety at its 92 New York stores as part of a deal with prosecutors that avoids criminal charges in the trampling death of a temporary worker. Jdimytai Damour, 34, was crushed as he and other employees attempted to unlock the doors of a Long Island, New York, store at 5 a.m. on Friday, November 28th.

The news comes months after Nassau County District Attorney Kathleen Rice began a criminal investigation into the death of Damour, a seasonal worker from Jamaica, Queens, who it is now known died from “positional asphyxiation” that resulted from direct and intense pressure having been applied to his chest - a result to be expected when a human being is trampled by 2,000 on-rushing shoppers.

[Wal-Mart] has agreed to implement an improved crowd-management plan for post-Thanksgiving Day sales, set up a $400,000 victims’ compensation and remuneration fund, and give a $1.5 million grant to Nassau County social services programs and nonprofit groups.

Perhaps more importantly, however, is that Wal-Mart will escape criminal prosecution as a result of the agreement. A telling quote from the Chicago Tribune - “The agreement included no admission of guilt by Wal-Mart.”

This aspect is important, because while Attorney Rice points out that Wal-Mart would have been subject to only a $10,000 fine if convicted, that conviction would have been hanging like a cloud over Wal-Mart during plaintiffs’ civil cases. The $400,000 victims’ compensation fund isn’t nearly as much as Damour’s family would expect to collect in a civil suit if Wal-Mart were to be found at fault, and anyone who accepts money from the compensation fund will automatically waive their right to sue. And as we reported following the tragedy, many media outlets and labor officials from UFCW to the Wall Street Journal have heaped the majority of the blame squarely on Wal-Mart for being woefully unprepared and understaffed (though that hardly would make winning a civil suit a slam dunk). From the Tribune:

Earlier this year, Damour’s family announced plans to sue the county, retailer and others. The family’s attorney did not immediately comment on Wednesday’s announcement. Any victims who accept payment from the Wal-Mart compensation fund will be required to waive their right to a separate civil suit against Wal-Mart, Rice said.

A heartfelt move by Wal-Mart, or part of a strategic plan to gain some positive press and escape further liability? You decide...More on initial reaction to the stampede, and Wal-Mart’s settlement announcement, after the jump.

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Surrounded by the enemy, with a story vaguely reminiscent of Frodo’s trek into Mordor (that’s for you Lord of the Rings fans - you know who you are), Target is wading into Benton County, Arkansas, home of America’s retail behemoth. A new store is scheduled to open tomorrow right in Wal-Mart’s backyard, with seven Wal-Mart supercenters, five Neighborhood Market grocery stores and two Sam’s Club outlets located within a 25-mile radius.

Like Wal-Mart, Target has steadily slowed its store growth, a trend that may continue depending on economic conditions. Ironically enough, the demographics in Benton County appear to be a good match to the template of Target’s average customer:

“Those demographics there [in Benton County], people have slightly more income on average, discretionary, and will tend to trade up from pure discounters...” And Target “is known very well for their housewares and apparel.” The typical Target “guest,” as the company calls its customers, has a median age of 42 with a median household annual income of $60,000, said Katie Benscoter, a spokesman at Target headquarters. A third of them have children at home and just over half have a college degree.

The store could have an ace in the hole - its new manager, Chuck Simmons, started his retail career at Wal-Mart and is familiar with the area. Still, to put things in perspective, Wal-Mart currently has five supercenters and 12 discount stores within 25 miles of Target’s home office in Minneapolis. And despite prices that are within 1-2% of Wal-Mart’s markdowns, Target continues to battle the perception that it is the more expensive of the two discount retailers.

Target set to open store in Wal-Mart’s backyard [Arkansas Democrat Gazette]

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Russell Simmons is a hip-hop pioneer. He’s an activist; a philanthropist; a role-model for young, disadvantaged youth.

But is he really launching a new line at Wal-Mart? And now???

Yes, apparently he is. On Feb. 15 Wal-Mart will roll out a new line of men’s clothing designed by Simmons in 350 stores - about 10% of its U.S. outlets - and on its Web site.

[T]he move seems surprising, especially as Wal-Mart flopped famously in its previous efforts to sell more fashionable, pricier clothing… But as Wal-Mart slows its store expansion, it needs to sell higher-profit items to continue generating growth, and apparel is one segment that can still draw new customers.

The clothing items will be priced anywhere from $10-30, not terribly expensive, but some analysts are still questioning the move. From BusinessWeek:

Still, the new line’s timing could not be worse, some analysts say, since Americans have chopped discretionary spending so dramatically.

Wal-Mart to Launch Simmons Clothing Line [BusinessWeek]

As most apparel retailers announce job cuts and store closures because of sluggish sales, it is a precarious time for any of them to launch a new brand. But on Feb. 15 Wal-Mart Stores (WMT) will roll out a new line of men’s clothing designed by hip-hop entrepreneur Russell Simmons in 350 stores, about 10% of its U.S. outlets, and on its Web site. The launch will come less than a week after the world’s largest retailer announced that it will move buyers in the apparel division from its Bentonville (Ark.) headquarters to New York to increase the focus on fashion.

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**********UPDATE**********
******February 10, 2009******

The North Dakota House Industry, Business and Labor Committee voted 8-5 yesterday to recommend that the full House defeat legislation to repeal the restrictions.

Proponents of the repeal argue that competition will lower drug prices throughout the state, especially with Wal-Mart’s $4 drugs. But opponents say repealing the law would endanger the future of rural pharmacies in small-town North Dakota.

Our original post is below - for more on the update, check out today’s stories in Forbes and the Bismarck Tribune.

***************************

North Dakota legislators have elected to go with the safe answer when asked about a bill that would change pharmacy ownership rules: we have no idea.

That may be oversimplifying, of course, but since little has changed since we first mentioned this piece of legislation last week, I’m satisfied being overly simple. The bill would pave the way for large retailers like Wal-Mart to get into the pharmacy business, a market that has to this point been served by locally-owned businesses.

For more public opinion on the matter, check out this, and this, and this, and this.

Legislators say they haven’t decided to support pharmacy bill [Jamestown Sun]

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The Connecticut Post ran a story over the weekend that serves as yet another signal Wal-Mart is looking to extend its financial services department. The feature focuses on Wal-Mart seeking to expand its check cashing services into Connecticut, announcing in television advertisements that it will cash a paycheck for up to a $3 fee, and hopes to be providing the service within a year in Connecticut, after it gets licensed.

Wal-Mart has actually been in the check cashing business for quite a while now - in 2004 the retailer began allowing customers to cash their pre-printed payroll or government-issued check, including tax refund checks, at designated registers in Wal-Mart Stores and Neighborhood Markets in 44 states. In the others (Connecticut, Massachusetts, New York, New Jersey, Nevada, Rhode Island) Wal-Mart was applying for a license to do so. In 2007, Wal-Mart announced plans to open 1,000 in-store MoneyCenters aimed at serving people without traditional bank accounts, and also debuted a reloadable, prepaid Visa debit card that didn’t require a bank account or proof of U.S. citizenship.

Since then, Wal-Mart has received a check cashing license in Massachusetts, and apparently continues to try for one in Connecticut. As it is, CT allows retailers to cash checks without a license, but they cannot charge more than 50 cents per check. With a license, Wal-Mart could charge up to 2% of the amount cashed, although Wal-Mart has maintained that it will charge no more than $3 per check. It sounds like a modest amount per check, and indeed, it could be a substantial savings over check cashing outlets or banks where charges can reach $10-15 per transaction. Still, this is most likely nothing more than a way for Wal-Mart to attract more sales in its stores, while breaking further into a business retailers have generally shied away from.

Hank Shyne, executive director of the Financial Service Centers of America Inc., was well aware of Wal-Mart’s move and said it is something his group is paying attention to. He added regulations in the various states make it difficult for the retailer to come into the business. But it is a big and attractive market, he said. “There are a lot of people who live paycheck-to-paycheck and need the money immediately,” Shyne said. In New York in 2007, there were 32 million checks cashed worth $16 billion. “Nationwide it’s more like a $160 billion business.”

It wouldn’t be surprising if the ad push is ultimately aimed at getting more people using its MoneyCenters, and its reloadable debit card in particular.

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The bill is H.B.1440, and if it passes the North Dakota legislature it will allow large chains like Wal-Mart and Walgreens to begin selling prescriptions. As it stands today, pharmacies are required to have pharmacists as their majority owners, eliminating the ability of large pharmacy chains to operate.

The debate, which drew public comments earlier today in a packed auditorium in Bismarck, appears to center on lowering costs and providing more choice. Proponents of the bill believe that changing the North Dakota law will allow large retailers to come in and help lower drug costs, partially due to the introduction of $4 prescriptions. Opponents, however, counter that North Dakota drug costs are already low.

Mike Schwab, a spokesman for the North Dakota Pharmacists Association, said every national study on prescription drugs shows that prices in North Dakota are “well below” the national average. Testimony that prices are high is “technically is not the truth,” he said.

So, if that’s true, the question is whether North Dakota wants to drop its prices even lower at the expense of independent stores. Will an influx of large chains spur competition, or will it simply drive smaller, locally owned stores out of business?

Rep. Arlo Schmidt, D-Maddock, said lawmakers should not be responsible for “pulling the plug” on small town drug stores.

Big drugstore operators take aim at N. Dakota law [Associated Press]

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We’ve been following Wal-Mart’s transgressions against its disabled employees for some time now, focusing in particular on the company’s consistent refusal to provide them with ADA-mandated reasonable accommodations. We have, as well, followed issues that disabled customers have had with the retail giant, including facing refusals to allow service animals into the store - this case involving the lovable Chloe (pictured right) comes to mind.

Now, the Civil Rights Division of the U.S. Department of Justice recently entered into a settlement agreement with Wal-Mart under Title III of the Americans with Disabilities Act, requiring the company to improve access for persons with disabilities at Wal-Mart stores nationwide. A big thanks to journalist/blogger Suzanne Robitaille, formerly of BusinessWeek Online, for sending over the DOJ info. You can check out her blog here. The agreement resolves an investigation that began after the DOJ received several complaints alleging that Wal-Mart had refused to provide “reasonable modifications to its rules, policies, practices, and procedures for customers with disabilities.” Wal-Mart has agreed to take a number of steps, including:

* an undertaking by Wal-Mart not to discriminate in violation of Title III of the ADA and to provide reasonable modifications to individuals with disabilities as required by Title III of the ADA, such as disability-related assistance such as helping customers in locating, lifting, and carrying items;
* the adoption and implementation of an ADA-compliant policy of welcoming persons with disabilities who use service animals into Wal-Mart stores with little or no questioning and without repeated challenges by Wal-Mart employees;
* training for all employees on Wal-Mart’s obligations under Title III of the ADA to make reasonable modifications for individuals with disabilities and Wal-Mart’s new ADA-compliant service animal policy;
* additional training for store management and People Greeters, since employees in these positions have additional responsibilities under Wal-Mart’s new service animal policy;
* the posting of Wal-Mart’s new service animal policy on its website and in employee areas at its stores;
* the establishment of a grievance procedure in which Wal-Mart will receive complaints alleging violations of Title III of the ADA at a toll-free hotline, investigate such complaints, and take appropriate corrective actions to resolve any noncompliance with Title III of the ADA, including relief to complainants where appropriate.

For a recap of Wal-Mart issues with disabled employees, you can check out our report Reasonable Accommodation: Denied here.

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Shhhhh...that tightening, squeezing sound...like a leather belt fighting the request to constrict one more notch. That sound you hear...THAT is the sound of consumer credit being tightened even further. As U.S. News and World Reports is reporting on its Alpha Consumer blog, all sorts of new factors may begin to be considered by credit companies doling out credit to the masses. Among those factors: residential location, profession, and shopping habits.

Consumers who happen to live in an area with a high foreclosure rate or who work in real estate, construction, or the auto industry also might find it more difficult to take out credit cards, says Casey Research. Even shopping at Wal could raise a red flag.

It would appear that Wal-Mart’s status as the place to shop for cheap items in this tough economy might soon turn into a warning mechanism for credit companies, worried that frequent customers may be frequenting Wal-Mart because they have no other choice. Could it be that shopping at Wal-Mart will become a credit negative??

Attention Wal Shoppers: No Credit for You [Alpha Consumer - U.S. News and World Reports]

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A pair of stories - infant formula in Texas and continuing tax issues in Connecticut.

First, from Texas. Texas Wal-Marts are asking customers to check the dates on any infant formula sold within the state, after the office of the Attorney General learned that the retail giant had been selling expired product. There doesn’t appear to be a lawsuit on the horizon...the AG’s office simply asked Wal-Mart to remove the expired formula from shelves, inform customers, and make restitution. That most likely means refunds, but state penalties are not out of the question either.

The second story comes from Connecticut, where the neverending double taxation story has gotten life breathed back into it yet again. Here is our most recent post on the subject. And this, from the Hartford Courant:

Sue Drobinski of New Britain says that despite Wal-Mart entering into an agreement to follow state laws on taxes involving even exchanges, its employees in New Britain are not following the law.

I sent her email to state Consumer Protection Commissioner Jerry Farrell Jr. this morning, who has responded that his legal department will contact Wal-Mart to bring up this and other similar complaints.

Read on for more on both stories…

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Wal-Mart’s invasion of the Mexican banking sector continues. Last year, the Mexican government granted Wal-Mart the authority, making them only the second retailer in Mexico to do so, to set up banking operations at its stores. Wal-Mart Bank started fast, with 115,000 new clients its first year and opening service desks in 357 stores, according to an article in Mexico’s El Milenio. That growth may be under challenge, however as this December a law passed the country’s Senate that would potentially prevent Wal-Mart from banking at all.

The bill, originally aimed at providing protections to Mexican consumers who use financial services by outlawing banks from sending pre-approved credit card and other offers by phone or mail, and increasing competitivity in the banking sector, was not satisfactory to Mexico’s major banking players, mostly multinationals like Citigroup and HSBC. Before the bill passed, the banking lobby demanded that the Senators include an Amendment limiting the amount of a bank’s total deposits taking place outside traditional “branch” locations to 25%. To get around the proposed law, the National Banking and Securities Commission, which according to one leading Mexican columnist is hell-bent on deregulating the financial sector, intends to use an administrative measure to authorize Wal-Mart to operate each one of its cash registers in its stores “as if it were a bank branch”.

Considering the disastrous effects financial deregulation and predatory lending practices have had on the U.S. economy, and considering Wal-Mart’s track record of offering exorbitant interest rates on its store-brand credit card, these latest maneuvers give serious cause for concern. Furthermore, in banking with Wal-Mart, Mexican consumers might not suffer only financial, but also physical harm; due to Mexico’s enormous problems with fraud and robberies, traditional branch banks in the country today are heavily guarded and the multinational banks use numerous electronic and physical security measures to protect their customers; these protections would be mostly absent at Wal-Mart’s nationwide cash registers.

The original article (translated) in Mexican newspaper La Jornada is printed below:

In spite of the fact that the [Mexican] Senate set limits on banks’ ability to offer financial services through third parties, such as retail stores now labeled so-called “bank branches”, the National Banking and Securities Commission (CNBV) put forth an administrative measure to give Wal-Mart authorization for each one of its cash registers to become a bank branch.

This kind of authorization has been denied the retailer by U.S. authorities, said analysts.

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We thought this story was over last week when Wal-Mart fessed up to charging illegal sales tax in Connecticut. We were wrong.

The Hartford Courant is reporting that, despite acknowledging the wrongdoing and vowing to change its ways when it comes to double-charging sales tax, the message has yet to filter down to, you know, the people that matter. Namely, employees. The following is an excerpt from a letter submitted to the Courant:

I find it absolutely incredible that no salesperson knew the “corrected” policy. I hope the assistant manager refunded my sales tax because she really knew it was the right thing to do, or if she just did it to please the customer.  In any case, I’m happy I got my money back. Of course, it’s not the money, it was the principal of the whole thing. I’m still amazed at the whole thing and it has “tainted” my thoughts of their store and my willingness to continue shopping there.

I’d say this was a one-time deal, and we’ll never read about these sales tax shenanigans again. But…

The Courant has forwarded the complaint to the Connecticut Consumer Protection Commission.

Despite promise of reform, Wal-Mart still violating Connecticut tax laws [Hartford Courant]

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An LA Times piece gives us new insight into the crowd atmosphere that led to Jdimytai Damour’s death - an atmosphere that began long before the doors at the Valley Stream store opened.

Apparently, shoppers were already rowdy, pushing and reporting injuries by 3:30 AM, long before the store opened. At that time, the crowd “had grown to 2000” - well above the crowds of previous years. While the article might appear to be an indictment of shoppers’ own senseless animal behavior and unrestrained emotions, it makes it clear that Wal-Mart had plenty of time to observe the chaos, and to work with local police and its own security to protect its customers and workers.

A coworker tells the Times that Damour told him after he was placed at the front of the store, before the doors were opened and then broken off the hinges, “I don’t want to be here.”

Wal-Mart crowd unruly long before trampling [Los Angeles Times via Seattle Times]:

NEW YORK — He took his last breath on the floor at Wal-Mart, between the soda machines and a device that gives change for cans and plastic.

Trampled by a mob of bargain-hungry Black Friday shoppers, Jdimytai Damour, 34, died by asphyxiation, leaving people asking: Why, and how?

Audio-enhanced chatter captured on a cellphone video posted on YouTube and interviews with witnesses offer some hints.

The video shows a police officer crouching by a 6-foot-5-inch, 270-pound man lying at the entrance of the Long Island Wal-Mart. A paramedic pumps the man’s chest so forcefully his limp legs and feet joggle. Shoppers peer from behind glass doors or stand a few feet away, hands in pockets.

“They need to shock him,” a voice says.

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Wal-Mart has a long history of aggressively pushing into Mexico’s banking sector, and trying to keep various forms of payment within its stores. For example, earlier this year Mexico’s Supreme Court criticized Wal-Mart’s practice of compensating its employees with “voucher” cards only redeemable for goods within Wal-Mart stores, comparing this program to the existence of “company stores” under early 20th Century Mexican dictator Porfirio Diaz. Additionally, Wal-Mart also offers its own brand of banking services in-store, a practice that so far is illegal in the U.S. While Bancomer customers’ ability to pay credit card bills at Wal-Mart cash registers might seem beneficial, it could significantly draw business away from other banks who do not have access to the retail giant. And the move is particularly suspicious because Bancomer already administers Wal-Mart’s own brand of credit card, according to a recent USA Today story. With its own credit card, Wal-Mart has not exactly given fair lending terms: the card carries a whopping 69.6% annual interest rate, high even by Mexican standards. And given the recent financial crisis, caused in part by irresponsible lending practices, there is serious reason to doubt whether Wal-Mart’s offering of financial services to Mexico’s low- and middle-income consumers will serve their needs, or only drive them further into debt.

Mexican Customers Now Able to Pay Bancomer Credit Card Bills at Wal-Mart [El Sol de Mexico, 11/11/08]

Starting this week, [Mexican bank] BBVA Bancomer’s 5 million customers will be able to make credit card payments in Wal-Mart stores across Mexico, as part of the retailer’s and bank’s common strategy.

Bank customers will be able to make the payments in 745 locations of Wal-Mart de Mexico, including in different store formats, without paying additional fees and during more extensive hours than Bancomer’s own branch locations. They will be able to make payments 365 days per year in Wal-Mart, Bodega Aurrerá, Sam’s, Superama and Suburbia nationwide, taking advantage of the comfort, security and flexible hours that these stores offer.

Bancomer’s Director of Credit Cards and Consumer Banking, Rodrigo Manrique, commented that “the objective is to offer our customers more ways, and broader hours, to make their payments conveniently. Through this agreement, Wal-Mart de Mexico will receive an increased flow of customers in its stores, and both institutions will boost customer loyalty by offering them a superior service”.

For his part, Raúl Argüelles, Senior Vice-President of Corporate Affairs and Human Resources for Wal-Mart de Mexico, indicated that this commercial alliance permanently adds value to what his company offers to clients.

At the moment of paying at cash registers, users of this service will obtain a receipt of the transaction that has taken place, which they should keep since it will function as proof of payment should any further clarification be necessary. For the customer’s benefit, Bancomer will consider the day this transaction takes place, in any Wal-Mart de Mexico location, as the date of payment.

See the original article in Spanish here

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California Attorney General Jerry Brown - a former California Governor, CA Secretary of State, Mayor of Oakland, and President of the Patrick Stewart fan club - announced a settlement with Wal-Mart today in which the retailer was fined $1.4 million and ordered to implement a “get it free” program for California consumers. This after an investigation found that the store overcharged for numerous items at checkout.

Actually, the investigation and settlement announcement was a joint venture with San Diego County District Attorney Bonnie Dumanis, who has a much shorter but waaaaayyyyy more interesting Wikipedia entry than AG Brown. In fact, Dumanis, a Republican, is the first openly gay or lesbian District Attorney in the county, and the first Jewish woman to hold the post. Fancy that.

Anyway, back to the story we’re here to tell. Apparently, Investigators conducting random price-checking across the state found that 164 Wal-Mart Stores in 30 counties had made scanning errors. On average, customers who were overcharged paid an extra $8.40 at checkout.

Christine Gasparac, a spokeswoman for Brown, said state investigators concluded that “these were systemic problems,” not just run-of-the-mill mistakes.

“Systemic problems” might sounds bad to some, but one person’s systemic problems are another person’s financial opportunity. As the LA Times blog puts it - if Wal-Mart’s price scanners are wrong, you can make a quick $3. So the moral to this story - and every blog post I write today will have a moral - is to shop at Wal-Mart, cross your fingers that their registers go insane, and then collect a cool handful of George Washingtons.

Wal-Mart now promises to give back $3 to customers any time a pricing mistake is discovered. If the mispriced item sells for less than $3, you get it free. The refund program begins immediately and will last for four years, but it’s up to shoppers to spot any disparity between what a product is listed for on the shelf and what’s rung up by the price scanner.

The company was also ordered to pay $1.2 million in penalties; $190,621 to reimburse costs to numerous state agencies and prosecutors’ offices; and $50,000 to a consumer-protection prosecution trust fund.

Wal-Mart to pay $3 if price-scanning errors occur [Sacramento Bee]

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AS A FORMER EMPLOYEE OF WAL-MART, I was aware that my store had a “loss-prevention team” - which basically consisted of two obvious plain-clothed, unarmed “security officers” that walked around the store watching people shop, trying to catch shop-lifters.  These guys were likely moonlighting at Wal-Mart on their days off from bouncer-duty at the bar.  Nevertheless, occasionally they would catch someone stealing, and that’s where it all gets fuzzy.  Let me make it perfectly clear, these guys ARE NOT law enforcement officials so the level of actual ‘enforcement’ they were legally allowed to use always seemed unclear.  From what I understood, they were not allowed to physically intervene in a theft situation, just ‘escort’ them to the back, and call the police. They were not allowed to slam you face-first onto the ground.

Apparently a loss-prevention officer for a Wal-Mart in Spartanburg, S.C. never got that memo. WYFF-TV in South Carolina reports that a video-survellience camera captured footage of loss prevention officer, Joseph Gregorie bear-hug a 58-year-old woman, he suspected of shop-lifting, and slam her face-first into the ground.  Talk about your all-time, total losses of composure.  The woman sustained minor facial injuries and was taken to an area hospital.  Wal-Mart was vague when talking to WSNA-TV in South Carolina about their loss-prevention protocol:

“...the spokesperson said their employees do follow certain ‘asset protection’ protocols, but she said she could not go into details about those protocols because of this investigation.”

UPDATE: if you didn’t already see it, check out the comment below from loyal reader Rob. He reports seeing a similar situation at a store where he worked.

Wal-Mart Employee Charged With Assaulting Shopper [WSNA-TV (S.C.)]

A Wal-Mart employee faces charges after police say he slammed a woman suspected of shoplifting face-first into the ground.

It happened late Tuesday night at the Dorman Centre Wal-Mart in Spartanburg. According to police reports, Joseph Gregorie, the store’s loss prevention officer, saw a 58-year old Greer woman concealing items in a bag. Gregorie says when he confronted her, the woman dropped the bag and tried to run away. The woman, Deborah Blackwell, tells police that Gregorie “bear hugged” her and slammed her face-first into the ground. She suffered a large contusion on her left eye and an injured hand and had to be taken to the hospital by ambulance. Gregorie told police that he grabbed Blackwell and she lost her balance and they both fell. But after reviewing surveillance video, the investigating officer said it shows Gregorie “throwing her to the ground”. He took the evidence to a judge who signed arrest warrants for both Gregorie and Blackwell.

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Mary Bach, a woman from Murrysville, Pennsylvania has won her fourth lawsuit against Wal-Mart after being over-charged for a dress.  Bach, nicknamed the ‘scanner-lady’ has gained a certain level of fame recently, as a champion of consumers for filing numerous small-claims suits against retailers for what she calls: “electronic shopper-lifting.” She has sued Kmart and Eckard after being over-charged for products.  Wal-Mart plead no-contest, having violated a consumer-protection law and had to pay Bach $164 including court fees. “Bach said it is not about the money” says WPXI-TV (Pa.), who also quoted her as saying:

“Here you have retailers who can reach into your wallet by overcharging you multiple times and they then shrug their shoulders and say, ‘oops it’s a mistake.’”

The Associated Press said that Bach was a key player in passing a law which requires the state to conduct inspections of price-scanners.

Wal-Mart is accustomed to being sued over pricing issues.  Just over a year ago, we posted a story from the Manitowoc Herald Times Reporter about how Wal-Mart was fined almost $90,000 from the Wisconsin State Legislature for over-charging for bulk food items.

Woman Sues Wal-Mart Over Price Problems [WPXI-TV (Pa.)]:

DELMONT, Pa.—A woman won a lawsuit against Wal-Mart after she claimed she was overcharged for purchases at the chain’s store in Delmont.

Wal-Mart pleaded no contest and will play Mary Bach $164, including $64 in court fees.

In an earlier version of this story, Channel 11 posted only a portion of Wal-Mart’s response to the litigation. The following is Wal-Mart’s response in its entirety:

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The biggest oil company in the world and the biggest retailer in the world are loving life as the economy sinks.

Wal-Mart stock has risen 20% since the start of the fiscal year. Exxon Mobile just posted the largest quarterly earnings in American history- to the tune of 14.83 billion dollars.  The recession has done wonders for both companies; the volatile price of oil, puts Exxon Mobile in the position to capitalize on futures from supply-wary market analysts, while Wal-Mart continues to post double-digit profits because of the high number of price-conscious consumers who are forced to trade down - even if it’s against their will.

Many more-upscale retailers, such as Target, are not doing quite as well during the recession.  BusinessWeek reports that looking at the most recent quarter over the past year, Wal-Mart’s same store sales are up 5% while Target’s are down 0.4% and K-Mart’s are down 5.6%.

But these days are numbered. Wal-Mart knows that the recession won’t last forever. This week, they unveiled plans to focus more on renovating existing stores next year than opening new stores. Wal-Mart realizes that when the economy turns up again, many of its new customers will want to shop elsewhere - and they’re trying to stop it. The question is: will it work?

Wal-Mart Wins Big During Downturn [BusinessWeek]

These are heady times for Wal-Mart (WMT). The Bentonville (Ark.) retailer has been enjoying double-digit profit growth and strong sales as bargain hunters crowd its aisles. Its stock is up about 20% since the start of the year. And shoppers like Sal Garcia of Downey, Calif., are joining the growing ranks of loyal customers. “Look,” says Garcia, 52, putting the last of 10 shopping bags into the trunk of his Lexus, “all that for $54!”

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