The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern. Consumer Alerts are not legal advice, legal authority, or a binding legal opinion from the Department of Attorney General.
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The Shopping Reform and Modernization Act (“Scanner Law”), became effective September 1, 2011. This legislation replaces the former Pricing and Advertising of Consumer Items Act (“Item Pricing Act”). The Scanner Law is similar to the Item Pricing Act. The most important change is that while retailers are required to display the price of items offered for sale in the store where the item is located, sellers are no longer required to individually mark the price on the item itself. The Scanner Law permits the price to be displayed on shelf signs or by other methods clearly visible to consumers in the store at the place where the item is located.
This Consumer Alert provides information in response to questions about pricing requirements and consumer rights under the Scanner Law.
The Scanner Law requires that the price of most items be clearly displayed. This can be done with signs, electronic readers, or price stickers. If a scanner charges you more than the displayed price of an item, when:
You are entitled to receive the difference between the displayed price and what you were charged. You are also eligible for a “bonus” of ten times the difference between the two. The bonus must be at least $1.00 but it may not be more than $5.00. If the seller does not pay the difference and the bonus, you may sue for actual damages or $250.00, whichever is greater. You may also be entitled to attorney fees of up to $300.00.
No. When you purchase multiple identical items in a single transaction, you are only entitled to one bonus payment. The bonus payment will be ten times the difference between the displayed price and the price you were charged for one item, but not less than $1.00 and no more than $5.00. You get the difference between the displayed price and the price you were charged for each item you purchased.
The following consumer items are not required to have the price displayed in the store at the place where the item is located:
Complaints about the improper display of prices should be directed to the Department of Agriculture & Rural Development, Weights & Measures Section in the E.C. Heffron Laboratory. Call 517-655-8202 or write to 940 Venture Lane, Williamston, MI 48895.
You are entitled to the sale price but not the bonus. There must be a price displayed for the item and the item must scan for more than the price displayed for you to be eligible for the bonus. However, the failure to display the price of an item as required by the Scanner Law may itself be a violation of the Law.
No. The transaction must be complete. You must have a receipt showing the overcharge before you are eligible to receive the bonus.
No. You have 30 days from the date you purchased the item to notify the seller. This must be done in person or in writing. The notice you provide must include evidence of the loss suffered. The seller has two days after notification to pay.
Probably not. The Scanner Law only requires you to provide evidence of the loss suffered. When you produce the receipt, the seller will likely immediately mark the receipt. The seller has two days after notification to pay the difference and any applicable bonus. You will need to coordinate with the seller about how and when to receive the bonus if you do not want to provide contact information.
This is a legal question best answered by a court. The Scanner Law requires the seller to pay the buyer an amount equaling the difference between the displayed price and the price charged. The seller may avoid a lawsuit by also paying the buyer a bonus equal to ten times that difference, with a minimum of $1.00 and a maximum of $5.00. Dictionaries offer differing definitions as to whether "pay" is limited to an offer of money.
You must first notify the seller in person or in writing and provide evidence of the loss suffered. If the seller refunds the difference and any bonus due, you cannot sue for an additional amount. If the seller does not refund the difference and any bonus due, you may bring an individual or class action suit to recover actual damages or $250.00, whichever is greater, for each day violations of the Scanner Law are found. This would be combined with reasonable attorney fees not to exceed $300.00 in an individual action.
You can bring an individual or class action suit to recover actual damages or $250.00, whichever is greater, for each day violations of the Scanner Law are found. This would be combined with reasonable attorney fees not to exceed $300.00 in an individual action.
While that is likely the case, whether you are entitled to purchase the item at the advertised sale price is a question best answered by a court. The failure to sell items or services in the manner advertised, or refusal to sell at the price advertised, or in accordance with other terms and conditions of the advertisement, creates a rebuttable presumption of intent to violate the Scanner Law.
This is a question best answered by a court. It is illegal for a store to knowingly charge or attempt to charge a price higher than the price displayed for that item. You may have a claim if the store does not sell the item at the price displayed. It may be a difficult argument to win in court. It would mean convincing the court that the store knowingly charged the higher price when the pricing mistake is not intentional and would result in an obvious windfall to you, the consumer.
Yes. Alcohol is not an exempt item under the Shopping Reform and Modernization Act. Another law—the Liquor Control Code (MCL 436.1101-MCL 436.2303) must also be considered. Under the Liquor Control Code, alcoholic liquor may not be sold below the “minimum retail selling price.” This price is set by the Liquor Control Commission. Spirits must be sold at a mandated price while beer and wine may not be sold below cost. The difference between the amount charged for alcoholic beverages and the displayed price may be refundable. It is only refundable if the retailer has charged more than the minimum retail selling price.
If the consumer is due a bonus, this amount must be paid if the seller wants to preclude the buyer from bringing a lawsuit because the bonus is not a price adjustment. The payment of the bonus is an amount paid by the seller for their error and is different from the price of the alcohol.
Consumers should direct complaints regarding alcohol pricing to the Enforcement Division of the Michigan Liquor Control Commission by calling 517-284-6330 or by writing to the Michigan Liquor Control Commission, 525 W. Allegan, P.O. Box 30005, Lansing, MI 48909. Violations may be reported by calling the toll-free hotline 866-893-2121.
Complaints regarding a scanner error overcharge by a store should be directed to the Department of Agriculture & Rural Development, Weights & Measures Section in the E.C. Heffron Laboratory. Call 517-655-8202 or write to 940 Venture Lane, Williamston, MI 48895.
Download a dollar-bill-sized reminder card about your “Scanner Error Bill of Rights." (PDF)
To ask questions, contact the Attorney General's Consumer Protection Team at:
Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form