Contact: Larry Meyer, 517.372.5656 or Linda Gobler, 517.372.680

LANSING — A so-called white paper issued by Attorney General Jennifer Granholm is a slap in the face to the retail industry and contains fundamental errors about legislation intended to increase stores’ pricing accuracy through reform of the state’s item-pricing law, leaders of two Michigan retail groups said today.

"The research and conclusions of this study are misleading and harmful. This isn’t a white paper, it’s a whitewash that unfairly singles out and bashes one of Michigan’s most economically valuable industries," said Larry Meyer, chairman and CEO of the Michigan Retailers Association.

"Essentially, the attorney general paints retailers as cheaters preying on consumers. That’s both wrong and irresponsible. It’s an insult to the tens of thousands of honest, hard-working retailers in this state," said Linda Gobler, president of the Michigan Grocers Association.

Meyer said retailers strongly support passage of House Bill 5544, which, contrary to Granholm’s description, does not involve a form of technology called an Electronic Shelf Labeling System or ESL. Instead, the bill would enable retailers to get out from under the inefficient, costly and time-wasting burdens of individual price marking if, and only if, the store:
• Achieved an audited and certified 98 percent pricing accuracy.
• Used clear signage on store shelves to mark prices.
• Placed remote scanners in the store so that a consumer could verify the price and receive a printout that could be checked against the register receipt at checkout or at home.
• Paid the consumer double the current penalty whenever a mistake did occur.

"This legislation meets criteria that the attorney general has said was necessary for her to support reform of this outdated law," said Meyer. "Reform is vital to encourage continued growth of the industry that employs nearly one in five workers in this state."

Gobler also pointed out that consumers are protected from deceptive pricing practices by state law and the intense competition that exists throughout the retail industry. "This study ignores the price and service competition that exists in the retail marketplace, as well as the fact that any retailer that does cheat consumers doesn’t stay in business," she said.

The Michigan Retailers Association is the unified voice of retailing in Michigan and the nation’s largest state trade association of general merchandise retailers. MRA’s more than 5,800 retail business members operate more than 13,000 stores across the state.

The Michigan Grocers Association is a nonprofit industry trade association that provides lobbying and communications for retail and associate members. Its retail members operate more than 1,000 supermarket, grocery and convenience stores throughout Michigan. MGA also serves more than 100 associate member manufacturers, wholesalers, distributors, food brokers and providers.