Money Matters: The supermarket scanning error 'urban myth' laid bare

Every week we will break down, debunk and demystify your rights as a shopper in Australia. This week we are looking at a curious supermarket practice where scanning errors could see customers receiving items for free.

We all know life is getting more expensive than ever before, and how important it is to stretch every dollar you make.

That's why each week we'll answer a question surrounding what shoppers are – and aren't – entitled to when dealing with retailers and manufacturers.

Supermarket scanners are ubiquitous these days - but in the early 80s supermarkets needed customers to trust the new technology. (Nine Media/James Alcock)

Is the supermarket scanner myth an urban legend?

Hi Stu,

I was at a dinner party recently and one of my friends was claiming that he received a packet of chips for free because when he scanned it at the self-serve, it came up for a price that was higher than what it said on the shelf.

We all thought this was an urban legend. Surely the supermarket would sell it at the lower advertised price rather than give it away for free?

Have you ever heard of this?

Believe it or not, this is actually a real phenomenon - but it has less to do with consumer law and more to do with major supermarkets keeping customers happy.

In grocery land there is something called a "Scanning Code of Practice", which is a voluntary code that Woolworths, Coles and Aldi have all signed up to.

(Some IGAs have signed up to the code, some haven't, given the independent nature of those supermarkets.)

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Both Coles and Woolworths give detail about their policies on their respective websites. (Nine)

The code details in general terms that if a scanner malfunctions product scans at a higher price than what is advertised, it is free.

The whole idea of having the code is a throwback to the introduction of digital scanners, and was brought in to encourage the public's trust that the machines were reading the correct prices.

Coles calls this their "Promise on Price Scanning", and says they do this to "ensure confidence in the pricing accuracy at our registers".

"If a single item scans at a higher price than the advertised or ticketed shelf price for that item, we will give you that item free,"

the supermarket states on its website

.

When supermarket scanners were new in 1982, retailers were keen to boost trust in the new technology. (Nigel Scot McNeil/Fairfax Media)

Aldi is similar, noting that only the first incorrectly-scanned product is free.

"If a regular product scans at a price higher than that displayed, you are entitled to receive the first item free. All subsequent items will be charged at the lower price,"

it says on its website

.

"If a Special Buys product scans at a price higher than the price displayed, Aldi will refund the difference between the scanned price and ticketed price."

Woolworths shares fewer details on its policy, but like Coles it does let customers know that the policy does not apply if there has been a user error (rather than a scanner error) - such as an employee putting the wrong product code on an item.

"The Scanning Code of Practice doesn't apply to an error in unit pricing that's recorded on a shelf label,"

Woolworths says

.

Aldi has a special clause for "Special Buys" products, where it will refund the difference between the two prices. (Louise Kennerley)

There are some limitations to the code of practice too.

Both Coles and Woolworths stipulate that the "freebie" policy doesn't apply to liquor and tobacco products, items with a shelf price of $50 or higher, or where an operator error has occurred, for instance the wrong unit number has been keyed in or the wrong product is identified by the checkout operator.

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Given that today's supermarket scanners are far more accurate than any human, I think it would be pretty rare to take advantage of this policy.

Do you have a consumer question you want answered? You can get in touch with reporter Stuart Marsh at

smarsh@nine.com.au

.

The information provided on this website is general in nature only and does not constitute personal financial or legal advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.



Planning to spend big this holiday season after last year's lockdowns? It pays to check your bill before leaving the store. 

Not only might you catch a mistake, but if you were overcharged for an item, you may also be able to get it for free or at a discount.

More than 7,000 retail stores in Canada — including many large chains — are members of the voluntary Scanner Price Accuracy Code.

Managed by the Retail Council of Canada (RCC), the code mandates that when shoppers are overcharged for certain items scanned at checkout, they're entitled to compensation.

"I love it," said Roxanne Joshua, of Newcastle, Ont., who learned about the code more than a decade ago. Over the years, she says she's been compensated about 150 times after catching pricing errors at the till.

"It's great for a couple of reasons," she said. "One, obviously, I get free items or discounted items. But two, it also keeps the stores accountable."

How to get your discount

Canada's Price Accuracy Scanner Code has been around for nearly two decades, however, many shoppers still don't know about it. The code was created in 2002 by retail organizations to foster consumer confidence as stores began to adopt scanning devices at checkout.

"There was an element of lack of trust of machines reading barcodes," said Greg Wilson, the Retail Council of Canada's director of government relations in B.C.

The code applies to participating retailers across the country, except in Quebec, which has provincial laws covering retail pricing errors. 

Here's how the code works: When a customer alerts the retailer that the price of an item scanned at checkout (or self-checkout) is higher than the advertised price, participating retailers must honour the lower price. 

On top of that, if the item costs more than $10, the customer gets a $10 discount. If the item costs less than $10, the customer gets the item for free. 

If a customer purchases multiples of the same incorrectly priced item, they get only one of the items for free or at a discount. 

Karen Mellow, of Leamington, Ont., said she got a $10 discount at Best Buy after she was charged a higher price at the till for a Roku streaming device. (Submitted by Karen Mellow)

On Monday, Karen Mellow, of Leamington, Ont., purchased a Roku streaming device at Best Buy. The advertised price in the store was $44.99, she said, however, when the cashier scanned the item at checkout, she was charged $64.99. 

When Mellow pointed out the error and mentioned the code — of which the store is a member — she said she was charged the lower price and got the $10 discount.

"Instead of $65, I paid $35," she said. "[The code], to me, ensures a retailer is trying to be honest."

Exclusions

The code applies to scanned items where the lower price is advertised in flyers, online ads or displayed in-store — such as on a shelf. 

Individually priced items aren't covered by the code, however, and it also excludes weighed items, prescription drugs and behind-the-counter cosmetics.

According to the Retail Council, participating retailers include major chains like Best Buy, Canadian Tire, Costco, Home Depot, Loblaws, Shoppers Drug Mart, Sobeys and Walmart Canada.

Participants are supposed to post a sign about the code at or near store entrances. However, shoppers may not notice it, unless they're aware of the code's existence.

Shoppers may find a sign like this placed at the entrance or near cash registers of stores that are members of Canada's Scanner Price Accuracy Code. (Sophia Harris/CBC)

Joshua said she first learned about the code by reading about it in an online blog.

One memorable experience for her was when she bought bathroom items, including a faucet and tiles, at Home Depot for a renovation project. All eight items were incorrectly priced when scanned, she said, so she got a $10 discount on each one.

"I felt like I almost won the lottery," she said. "Now I had an extra $80 back in my pocket."

But the process is not always seamless, she warns. Joshua said there's been several times where she's had to battle a store employee to receive the compensation, because the employee wasn't knowledgeable about the code. 

"I think if the staff is a little bit more educated, we wouldn't have these types of problems," she said.

Roxanne Joshua, of Newcastle, Ont., says she has received many free or discounted goods over the years, thanks to knowing about the Scanner Price Accuracy Code. (Submitted by Roxanne Joshua)

While new staff sometimes may not yet be educated about the code, the RCC's Wilson said in general, the system works well. "We receive actually a very small volume of complaints about it," he said.

Customers who have unresolved disputes involving the code can contact the code's complaints line at: 1-866-499-4599. 

Mellow said she once called the complaints line after the cashier at a major retailer refused to honour the lower, advertised price on two umbrellas she wanted to purchase. 

After making the call, she said, the dispute was quickly resolved and she got more than she bargained for.

"I got a call back a while later from the manager. He said, 'You can come and pick out four umbrellas [for free] to make up for this mistake.'"

Why isn't the code mandatory?

In Quebec, all retailers must abide by mandatory price accuracy laws that are similar to those of the code. The province has also enacted rules for most individually priced goods, mandating that when customers are charged a higher price at checkout, the retailer must honour the lower ticketed price. 

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The Scanner Price Accuracy Code doesn't apply to individually priced items, Wilson explained, because that issue is covered by Canada's Competition Act, which prohibits retailers from making false or misleading claims about the price of a product.

So if a retailer refuses to honour the ticketed price under that act, the customer would have to file a complaint with the Competition Bureau and await the outcome of an investigation. 

Consumer advocate and lawyer Daniel Tsai said he believes there should be mandatory rules for all retailers — at least for large chains — mandating that they must honour an item's lower ticketed or advertised price. 

"As a general rule, it makes sense that the price you see as a customer should be the price you pay."