- Division of Standards
Recognizing the significance of the retail trade industry to the United States (U.S.) economy—and the importance to consumers that the prices they see at the store and online are accurate—the National Conference on Weights and Measures (NCWM) collaborated with the National Institute of Standards and Technology (NIST) Office of Weights and Measures (OWM) to conduct a nationwide price verification survey. This survey was performed by state and local weights and measures agencies from various states—like the Massachusetts Division of Standards (DOS).
“Participating in this national effort shows our commitment to pricing accuracy in Massachusetts both for consumers and retailers,” said DOS Commissioner Dave Rodrigues. “DOS continually works with businesses to make sure the prices consumers see in the store, online, and on retailers’ apps are the prices they’re charged at the register. We look forward to applying the knowledge we gained from this initiative out in the field.”
The survey’s inspection phase occurred from January 1, 2024, through February 29, 2024. DOS inspectors and their local partners from Westfield, Southwick, Taunton, Holliston, and Barnstable randomly chose stores to inspect. Then, within each store, random items were scanned to determine whether the price at the register matched the price displayed on the retailer’s website or app. When prices do not match, it is counted as a price error.
DOS inspections for the 2024 National Price Verification Survey included these retail categories:
- Automotive
- Big Box/Department
- Clothing
- Convenience
- Dollar/Discount
- Drug/Pharmacy
- Grocery/Supermarket
- Home Center
- Supercenter
- Warehouse/Club
Of the 26 U.S. states participating in this effort, Massachusetts landed at tenth for average price error percentage, around 2.5% for all errors combined. Breaking this result down a bit, about 1% of the items scanned at the register resulted in a price below the lowest price displayed on the retailer’s website or app, and about 1.1% resulted in a price above the lowest price displayed on the retailer’s website or app. It is important to note that the NIST Handbook guidelines that DOS follows consider any error rate above 2% noncompliant.
“For the national survey, the DOS team, along with our local partners, conducted 327 inspections across the state and collectively examined almost 28,000 items for pricing accuracy,” said DOS Deputy Commissioner Mark Merante. “While many stores met the passing rate of 2% for errors, others did not, and we are working with those retailers to improve their price accuracy. Our involvement in this survey helps DOS understand how Massachusetts retailers’ price accuracy compares with retailers in other states and where improvements can be made.”
Results from Massachusetts’ 327 store inspections:
- 97.9% of the 27,750 inspected items had correct, matching prices between the displayed price and register price.
- For the 2.1% of items that had errors, 312 items rang up at a price higher than the lowest displayed price (an overcharge that favors the store) and 279 items rang up at a price lower than the lowest displayed price (an undercharge that favors the consumer).
- In 14% of the stores, inspectors found 5% or more of the items inspected to be marked incorrectly, with a price that did not match the price at the register. DOS is working with these locations to significantly reduce this error percentage.
What happens when stores have an error rate above 2%?
DOS compliance officers meet with each store manager before and after inspections, explain the findings, and answer any questions from the manager or other staff. A manager must sign the inspection report. Some managers ask that DOS communicate the findings with specific corporate officials, such as regional managers or compliance managers, to further address issues. Retailers may receive a deadline for compliance from DOS—usually a month or two—to come into compliance. If an issue requires more time, like equipment repairs, new equipment installation, or staff training, DOS will work with the retailer on a reasonable schedule. For DOS, price accuracy builds customer loyalty and benefits retailers as well as consumers.
“Our goal is not to penalize retailers,” said Merante. “We want to be sure they understand the law and find the most efficient and effective way to comply. As demonstrated in the national survey results for Massachusetts, when there are pricing errors, our price verification inspections find that retailers are underpricing items almost as often as they are overpricing items.”
Educating consumers and businesses about the importance of price accuracy continues to be a priority for DOS. For example, in its efforts to reach more consumers on-site at retail locations and grocery stores, DOS recently distributed updated, bilingual price accuracy signs in English and Spanish, that are required to be displayed by law. “We want more consumers to know their rights and retailers to fully understand the legal requirements for pricing accuracy,” said Rodrigues. “When prices are correct, and equipment works properly, we all benefit.”
Learn more about the Division of Standards.