Attorney General Jennifer Granholm may take legal action against Home Depot for violating the Michigan Item Pricing Law in 45 of their retail stores.
The law, enacted in 1976, states that each business must prominently display each item’s price on it and must give customers a receipt of the transaction.
The attorney general’s office works with the Michigan Department of Agriculture to enforce it.
The department receives complaint calls from consumers who feel a store has violated their rights and then turns its findings over to the attorney general’s office, where legal action is taken.
Department of Agriculture spokeswoman Sara Linsmeier-Wurfel said the law serves two purposes.
“The law makes sure that commerce has an even playing field,” Linsmeier-Wurfel said. “Also, the consumer is protected so they know how much they’re paying.”
In surveys of 14 Michigan Home Depot stores, the attorney general’s office found that 15 to 50 percent of merchandise was not marked.
The business was given a notice March 27 that it has 10 days to respond to the allegations.
Granholm spokeswoman Genna Gent said the business faces substantial fines if the state successfully files a lawsuit.
“We’ve alleged violations of two separate laws,” Gent said. “We maintain that by not putting the price on the item, you’re not disclosing everything.”
Home Depot officials refused to comment on Granholm’s actions.
Linsmeier-Wurfel said Home Depot is not the first business accused of violating this law. Staples and Wal-Mart also have been previously accused.
Wal-Mart spokesman Rob Phillips said two years ago Wal-Mart agreed to pay a $250,000 penalty to settle a lawsuit with the attorney general’s office.
Though he said he wants to uphold the law, Phillips said it is financially taxing for the business.
“We have between 70,000 and 80,000 products on the shelves of our general stores - and in our Supercenters we have over 100,000 products,” Phillips said. “There are hundreds of thousands of items that have to be individually tagged, and to do that we have to hire more people.
“We have price changes every day.”
Country Markett, 1367 E. Grand River Ave., was issued a formal warning two years ago.
Store owner Charlie Lawler said he agrees with both advocates for and those against the law.
“There are some people who believe when you have item pricing, the customers get benefited because it keeps prices more competitive,” Lawler said. “But it’s very burdensome as well as costly.”
