Michigan has been very progressive in terms of dealing with retail customers being mischarged for their purchases. Since 1985, when the Item Pricing Act went into effect, the citizens of the state of Michigan have been turned into de facto price inspectors, largely due to the structure of the Scanner Law.
What is the Scanner Law?
The scanner law was created for the express purpose of dealing with the all-too-common practice of customers in retail stores being mischarged for their purchases. In this law, instead of merely providing for state intervention and civil fines to eliminate the mischarges, the state now gives citizens the right to collect an award from the retailer every time they discover that they have been charged a higher price for a good than what it was marked.
What Mischarges Are Eligible?
While the Michigan scanner law is very progressive there is only a limited eligibility and really, it’s quite simple. For a consumer to be eligible to receive the scanner award that consumer must have been charged and paid a higher price for an item than it was marked.
What Mischarges are Ineligible?
Mischarges that are not eligible for the scanner award are those where 1) an item scans higher than its advertised price, or higher than a shelf tag, even if the correct item was purchased; 2) where the cashier was notified of the error within the transaction and corrected it before the purchase is paid; and 3) items that actually scanned below their marked price, for obvious reasons.
How Much is the Award?
The award is calculated based on the size of the mischarge and is defined as being ten times the difference of the mischarge – between what was marked and what was charged – not to be less than $1 and no more than $5. Unfortunately, if the consumer purchased duplicates of the same items on the same receipt the award would only apply to the first item, not the multiples.
Claiming the Award
There are two ways to claim the award: in-person at customer service or in writing. To claim the award the consumer will need to present the original receipt and the item itself within 30 days of the transaction. Though the retailer should give the award automatically many do not so always mention the award when making a claim. Additionally, it is important to note that when claiming the award that the award must be paid in cash, not gift cards or other store credit.
What if the Award is Refused?
If the award is refused the law specifically grants consumers the right to bring a lawsuit against a retailer to recover actual damages – which would presumably include filing fees and fees incurred in serving process on the store – or $250.00, whichever is greater, plus reasonable attorney fees up to $300.00.
Exempt Items
Be aware that certain classes of items are exempt from individual pricing under the law and merely requires the prices to be posted elsewhere. These items include items sold by weight or volume which are not in a package or container, items sold in a coin-operated vending machine, motor vehicles and parts, and others.
Additional Information
If you have any doubts as to any possible gray areas in the law, contact the Michigan consumer protection division for require additional information
Michigan Compile Laws §§ 445.353, 445.360a
