O’Reilly Auto Parts agree to pay $1.5 million for scanner price violations
SAN DIEGO (CNS) – O’Reilly Auto Parts agreed to pay more than $1.5 million in penalties and restitution to settle allegations of scanner price violations, the San Diego City Attorney’s Office announced Wednesday.
The settlement follows an investigation by county Weights and Measures into alleged pricing violations, in which O’Reilly cooperated fully, authorities said. As part of their enforcement efforts, Weights and Measures inspectors from various counties reported hundreds of violations.
The alleged violations included incorrect sale prices, the failure to apply discounts at checkout stands and a failure to comply with the terms of an injunction issued against CSK/Kragen pursuant to a 2008 judgment. CSK/Kragen became O’Reilly Auto Enterprises Inc., a Delaware corporation that operates more than 480 O’Reilly Auto Parts stores in California.
“San Diego consumers have a right to expect that the prices they see in stores will be the prices they pay,” said San Diego City Attorney Jan Goldsmith. “This action will help to ensure that our citizens are treated fairly when they shop, as well as maintain a level playing field for business competitors.”
Under the terms of the settlement, O’Reilly is required to have an overcharge program that guarantees $5 off, or getting the product for free if cost less than $5, when overcharges occur.
O’Reilly agreed to post a sign in each California store notifying consumers of the program.
O’Reilly also agreed to appoint a corporate representative to oversee a Compliance Program and to designate a Price Auditor for each retail location. The settlement – filed July 1 with District Attorney Offices in San Bernardino, Santa Clara and Santa Cruz counties and the San Diego City Attorney’s Office – does not include any admission of wrongdoing.