More Updates:

Man shot, killed by police on Tucson's South SideEx-NFL quarterback's death raises questions about relationshp with womanTucson-area cops to join AG for crime forumRoad Runner by Andrea Kelly: Traffic laws we have forgottenWho are Tucson's rising stars?Tucsonans share memories of man landing on the moonWalt Disney World monorail crash kills employeeTexas teen says father wrapped chain around himCalderon opponents poised to gain in vote for Mexican CongressToday's interactive map of crime in TucsonTucson gas-price tracker: StarNet helps you save at the pump

Related articles:

State sues AutoZone, Wal-Mart over pricing Goddard's suit vs. Wal-Mart, AutoZone is a giant waste

Other articles by Howard Fischer:

Failed legislative bill leaves public-financed campaigns in doubtBurns: Brewer bungling her job House approves boost in funding for those seeking office next year 3 recommended to Brewer to fill seat on high court AZ can enact own greenhouse gas regsRecession reins in sprawl Pet bills aplenty pouring forth from Legislature Brewer wants budget right away, but not those other, lesser bills Flat-tax plan could hit walletsRepeal of ban on sparklers nears final OK

Health Care
CENTRAL ARIZONA COLLEGE
DIRECTOR OF HEALTH INFORMATION MANAGEMENT Health Care
Sierra Tucson
Eating Disorders Program Coordinator Trades/Construction
RANCHO RESORT
MAINTANANCE POSITION Health Care
Dependable Health Services
Physical Therapists Mechanical
Komatsu Equipment Co
Resident Field Mechanic Administrative & Professional
Tucson Urban League
CEO/President Construction
West-Press
Printing

PHOENIX -- The state filed suit Thursday against two major Arizona retailers, charging them with intentionally defrauding customers by failing to post accurate prices on products -- or not posting prices at all.

Attorney General Terry Goddard accused Wal-Mart Stores and AutoZone of a pattern of violations of state pricing laws going back to at least 2001. He said six-figure fines levied against both firms under those statutes have failed to get either to comply with the law, with each simply considering the financial penalties a "cost of doing business."

So Goddard said he now is rolling out his big gun: the state's Consumer Fraud Act, which carries penalties of $10,000 per violation. Under that law, he said, each company could face fines of millions of dollars for what he called "systematic fraud against the consumer."

Calls to both firms were not immediately returned.

Arizona law used to require that prices be stamped onto each item. But state legislators, responding to retailer complaints of costs, what with the new scanner technology, agreed in 1993 to scrap that mandate.

In exchange, however, stores agreed to abide by new laws which require that the price of every item be posted on the shelf or near each display. The law also requires that the prices that are rung up by the scanners match those shelf prices.

Goddard said Wal-Mart, the state and nation's largest retailer, failed more than half the compliance inspections conducted by the state Department of Weights and Measures at its 70 Arizona stores from the beginning of 2001, paying fines in excess of $450,000. AutoZone, the largest retailer of auto parts in Arizona with more than 90 stores, also failed more than half the inspections, paying more than $170,000.

"We've come to the inescapable conclusion they simply consider the fines to Arizona for illegal pricing simply a cost of doing business because they have continued doing exactly what they were doing," Goddard said. He said that is supported by the record: Neither chain has improved its performance in the six years.

The possibility of hefty fines, said Goddard, might finally get their attention.

Goddard said the failure to post prices is more than a question of inconvenience for customers.

"Consumers have a right to know what they're being charged," he said. "And they have a right to accurate pricing on the product."

The attorney general said the fact that scanners at cash registers sometimes ring up charges that are below the posted prices -- meaning consumers get a bargain -- is no defense to breaking the law.

"Consumer purchases are not games of chance," he said. "It is a not a defense for a company to say we only defraud some of our customers some of the time."

George Seitts, director of the state Department of Weights and Measures, said it would not be fair to allow major retailers to ignore the pricing laws simply because they can afford to pay the fines. He said that would give them an unfair competitive edge over "mom and pop" stores that take the time to both post prices and ensure they are accurate.

Goddard said he decided to use the state's consumer fraud laws because the amount of fines that can be levied under the pricing statutes is limited. But the attorney general said he is not skirting the intent of the Legislature which put those caps in place.

"I have separate statutory authority, also endowed by the Legislature, under the Consumer Fraud Act, to bring cases that involve systematic fraud against the consumer," he said.

Goddard said he would never use that authority to go after a retailer with just a few violations, or even one with multiple infractions over the course of a year. But here, Goddard said, "you have, six, seven, eight years of consistent behavior in exactly the same manner, without any effort to try to perform in a different way."

He said while Wal-Mart and AutoZone were chosen for the first lawsuits because of both their size and history of violations. But Goddard said other companies which have failed to improve their price posting and accuracy will be next.