County report finds frequent pricing errors at retail; ag department recommends scanner-registration program

San Joaquin County Agriculture Commissioner Kamal Bagri and Standards Inspector Matthew Hokeman presented initial results from a new quantity-control (price-verification) program on Nov. 18, telling the Board of Supervisors that inspections across 450 retail locations turned up pricing or labeling issues at a majority of stores and measurable consumer-dollar impacts.

Hokeman described the undercover, randomized test purchases used by the unit: inspectors buy items and compare the receipt to shelf prices, flyers or barcode lookups, then document any discrepancies. Out of roughly 6,800 purchased items, 7.8% were overcharged and 4.4% undercharged, for a combined item-error rate of 12.2%. By dollars, overcharges represented about 1.3% of the total value of inspected purchases and undercharges about 0.8%.

Hokeman estimated the average overcharge per affected item was about $1.51 and, using county-wide retail-sales figures as a rough benchmark, said that even small percentage errors could imply large annual dollar impacts if the error rate were widespread. He compared San Joaquin results with Sonoma County and state averages, noting that counties with active registration and inspection programs reported much lower overcharge rates.

Commissioner Bagri and Hokeman recommended the county consider a "scanner ordinance" (registration fee for stores with scanning devices) that funds an expanded inspection and enforcement program. They said other counties use device registration fees ($50'$500 per location depending on scanner count) to pay for inspections and that Sonoma County's more intensive program produced better compliance.

Supervisors asked about penalties and causes: Hokeman said many errors appear to be negligence (old signage, mis-scans) or training gaps rather than deliberate cheating, and that the department's initial approach emphasized warnings with fines to follow. Bagri said staff will return with a recommendation and fee schedule if the board wants to pursue a registration program.

Next steps: department staff will continue inspections, gather data, refine cost estimates for a registration program and bring a formal ordinance and fee proposal for board consideration.