Point-of-sale System Accuracy Verification - Automatic Checkout Systems - Business & Professions - CA

Section § 13350

This section outlines how counties or cities in California that have adopted pricing accuracy ordinances should inspect point-of-sale (POS) systems in retail stores. Stores must have random inspections of certain numbers of items, depending on the number of checkout registers. Inspections check that the lowest advertised price matches the price charged at checkout. If more than 2% of items do not comply, a reinspection can happen. Counties can charge fees for these inspections but these fees can't exceed the costs of performing the inspections.

(a) The board of supervisors of any county or city and county that has adopted or that adopts an ordinance for the purposes of determining the pricing accuracy of a retail establishment using a point-of-sale (POS) system, shall base the initial standard inspection of the POS system on the following criteria:

(1) The initial standard inspection shall be performed by collecting a random sample of items that shall include a maximum of 50 percent sale items from either:

(i) One department of a retail store.

(ii) Multiple areas of a retail store.

(iii) The entire store.

(2) The initial standard inspection shall be performed by testing a minimum random sample of 10 items for a retail establishment with three or fewer POS checkout registers.

(3) The initial standard inspection shall be performed by testing a minimum random sample of 25 items for a retail establishment with 4 to 9 POS checkout registers.

(4) The initial standard inspection shall be performed by testing a minimum random sample of 50 items for retail establishments with 10 or more POS checkout registers.

(5) The sealer shall verify that the lowest advertised, posted, marked, displayed, or quoted price is the same as the price displayed or computed by the point-of-sale equipment or printed receipt. Only items computed at a higher price than the lowest advertised, posted, marked, displayed, or quoted price shall be considered not in compliance.

(6) The minimum random sample size shall not apply to inspections of any establishment at which fewer items than the number specified as the minimum sample size are marked or displayed with a posted or advertised item price.

(7) The maximum percentage of sale item restriction in paragraph (1) shall not apply to inspections of any establishment at which a marketing or promotional practice does not enable the sampling of the minimum required percentage of nonsale items, such as “Everything In Store 50 percent Off” or the like.

(8) The compliance rate percentage of a retail establishment shall be determined by dividing the number of items in compliance by the sample size multiplied by 100.

(b) Enforcement action may be taken for any item not in compliance.

(d) The board of supervisors, by ordinance, may charge a point-of-sale system inspection fee or an annual registration fee, not to exceed the county’s total cost of inspecting or testing the accuracy of prices accessed or generated by the system pursuant to this section.

(e) The board of supervisors, by ordinance, may charge a reinspection fee for reinspections of a retail establishment that fails the prior inspection, not to exceed the county’s total cost of reinspecting or testing the accuracy of prices accessed or generated by the system pursuant to this section.

point-of-sale system pricing accuracy random sample inspection

Section § 13351

This section defines 'random sample' for the chapter as a selection process inspired by a specific guideline from the National Institute of Standards and Technology, focusing on random and stratified sample methods.

For purposes of this chapter, “random sample” of items means that the selection process shall be modeled after the National Institute of Standards and Technology Handbook 130, 2005 Edition (HB 130) – Examination Procedures for Price Verification, randomized sample collection; stratified sample collection.

random sample NIST Handbook 130 price verification

Section § 13352

This section defines a 'point-of-sale' system as any computer or electronic system used in retail stores to determine the price of items customers buy. This includes tools like UPC scanners and electronic price lookup systems.

For purposes of this chapter, “point-of-sale” system means any computer or electronic system used by a retail establishment such as, but not limited to, Universal Product Code scanners, price lookup codes, or an electronic price lookup system as a means for determining the price of the item being purchased by a consumer.

point-of-sale system retail establishment Universal Product Code scanners

Section § 13353

This law section defines what counts as 'sale items.' It includes anything advertised as being on sale or at a lower price than usual, like items labeled as promotional offers, limited-time deals, manager specials, or discounts taken at the register.

For the purposes of this chapter, “sale items” include any item that is represented or advertised to be lower in price from that which the item is normally offered for sale. A “sale item” includes but is not limited to, an item that is represented as “promotional,” “limited time offer,” a “manager special,” “discount taken at register,” or displayed with any other advertisements that offers or suggests a reduced price.

sale items advertised prices promotional offers

Section § 13354

This section defines what is meant by 'area' within a store for the purposes of selecting samples for verification. Areas include the whole store, departments, or specific shelf groupings, but explicitly exclude nonpublic areas like where a pharmacy keeps controlled drugs or product storage rooms.

For purposes of this chapter, “area” means an “entire store,” a “department,” “grouping of shelves or displays,” or other “section” of a store as defined by the sealer from which samples are selected for verification. “Nonpublic” areas of a store, such as the area in a pharmacy in which controlled drugs are kept or product storage rooms, shall not be included.

store samples verification area entire store

Section § 13355

This section defines what an 'initial standard inspection' is. It refers to an inspection done at the usual time set by the agency responsible for enforcing the rules.

For the purposes of this chapter, “initial standard inspection” means an inspection made at the customary time interval used by an enforcement agency.

initial standard inspection inspection timing enforcement agency

Section § 13356

This law explains that inspections of point-of-sale systems, which are not routine, are classified as "special inspections." These can occur for various reasons, such as an investigation, consumer complaints, issues raised by other businesses, or if a store has recently failed to price items correctly within the last six months.

All other inspections of the point-of-sale system are considered “special inspections,” including, but not limited to, inspections pertaining to investigations, consumer complaints, complaints from competing businesses or a reinspection of a retail establishment at which one or more price accuracy violations have occurred within the previous six months.

special inspections point-of-sale systems consumer complaints