Supermarket chain Whole Foods announced Monday that it has agreed to pay a fine of $500,000 to settle allegations that it overcharged customers in New York City for some of its prepackaged foods.
NYC's Department of Consumer Affairs said the settlement also requires the chain to conduct in-store audits annd implement policies to ensure products are weighed and labeled accurately in the future, according to The Washington Times.
"After discovering the troubling and repeated mislabeling of pre-packaged goods at Whole Foods last year, we are happy to have reached an agreement with Whole Foods that will help to ensure New Yorkers are better protected from overcharging," DCA Commissioner Julie Menin said in a statement.
The settlement originates from an investigation launched by the city agency in June after it looked at 80 different types of prepackaged products and found mislabeled weights on all of them, reported Business Insider. For example, berries were selling for $8.58, which were deemed overpriced, on average, by $1.15 a package. Other overpriced products included $4.85 for a package of chicken tenders and $14.84 for coconut shrimp.
Menin said her inspectors described it as "the worst case of mislabeling they have seen in their careers."
Back when the results of the investigation were announced, Whole Foods execs admitted to, and apologized for, overcharging customers but argued that all instances were unintentional, according to CNN.
The execs stood by that stament Monday, saying, "There was no evidence of systematic or intentional misconduct by anyone in the Northeast region or the rest of the company. While WFM refused to consider the DCA's initial demands of $1.5 million, we agreed to $500,000 in order to put this issue behind us so that we can continue to focus our attention on providing our New York City customers with the highest level of quality and service."
The chain adds that it already uses pricing and weights programs which go above and beyond the DCA's requirements, including a policy that ensures customers receive a full refund on mispriced items.
This isn't the first time Whole Foods has had to pay a large sum of money due to pricing. Last year, the chain paid nearly $800,000 to Los Angeles, Santa Monica, Calif., and San Diego after an investigation found widespread pricing violations.
