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Wal-Mart Fined Over Fake Sugar Tax

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Wal-Mart Fined Over Fake Sugar Tax

Wal-Mart has been fined for charging a non-existent sugar tax on fizzy drinks.

The retailer launched a sale across the US in June which advertised Coca-Cola 12-packs for $3, however consumers at 117 stores throughout New York were charged $3.50 at the till. When consumers queried the additional 50 cent they were told that it was due to a state sugar tax. However no such sugar tax exists in New York.

Apparently Wal-Mart ran a similar sale in March where 12-packs were also sold at an inflated price. Around 66,000 packs in total were advertised at one price but sold at an inflated price.

A false advertising investigation was then launched into the matter and the investigation has now been settled by New York's attorney general. As part of the settlement Wal-Mart will have to pay over $66,000 in penalties and costs and improve internal reporting.

© 2014 European Supermarket Magazine – Europe’s grocery retail magazine, for all your breaking supermarket, convenience store and FMCG news. Article written by Nicole Gernon

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