Wednesday, June 18, 2014
 

 

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Unit pricing agreement reached with online retailers

NEW YORK – A first-ever initiative to bring unit pricing information to online supermarkets and drugstores nationwide, including top national and New York retailers is paying off. Within nine months, this information will be available on the websites and mobile apps of Walmart, Costco, Walgreens, FreshDirect, CVS and Drugstore.com. Amazon refused to participate in this consumer-oriented initiative. 

“As the internet becomes the shopping mall of the 21st century, we need to ensure that consumers have the same robust protections online that they do in brick-and-mortar stores,” said New York Attorney General Eric Schneiderman. “Making New York more affordable for the middle class includes empowering consumers to spend their money wisely. This agreement, in which government and the private sector worked collaboratively to adapt conventional rules to an evolving marketplace, is a victory for consumers. I commend these retailers for recognizing the need for transparency and promoting openness online."

Unit pricing benefits consumers by allowing them to quickly compare prices of different items regardless of quantity, manufacturer, packaging size or discounts. For example, a single product category, such as breakfast cereal, can feature a wide array of sizes and packaging combinations from a variety of competing brands. The unit price combines those factors and gives the price per ounce, generally displayed next to the retail price, allowing consumers to make better and faster choices. 

According to Forrester Research, online grocery sales are projected to reach $21 billion a year nationwide by 2016. Nineteen states and the District of Columbia have some type of unit pricing requirement.  New York law requires that large retail stores clearly display the price per unit of measurement for most types of food, cleaning and paper products, toiletries, pet food and over-the-counter medications.

Prior to this initiative, unit pricing information online was rare. Among large retailers, full availability of unit pricing was limited to online grocer Peapod.

Under the agreement, Walmart and Costco will provide unit pricing information on their websites and mobile stores throughout the United States by the end of 2014. Walgreens, FreshDirect, CVS and Drugstore.com will provide unit pricing online by March, 2015. All six chains have agreed to continue providing unit pricing to consumers in the future, including in any online stores they create in the years to come.

"FreshDirect is an industry leader, and we were pleased that the Attorney General asked us to lead the charge to upgrade information to enhance customer knowledge in the online fresh food sector," Jodi Kahn, FreshDirect's Chief Consumer Officer said.