for Computerised Checkout Systems in Supermarkets

Transcription

1 code of practice for Computerised Checkout Systems in Supermarkets THIS IS AN IMPORTANT DOCUMENT INCORPORATING ALL REQUIREMENTS FOR THE OPERATION OF THE CODE OF PRACTICE FOR COMPUTERISED CHECKOUT SYSTEMS IN SUPERMARKETS. PLEASE RETAIN FOR FUTURE REFERENCE Australian Retailers Association Level 11, 45 Market Street, SYDNEY NSW 2000 Customer service hotline: Fax: (02) January 2004

2

3 3 introduction The Code of Practice for Computerised Checkout Systems in Supermarkets ("the Code") has been developed to ensure that the interests of customers are protected in the operation of supermarket scanning systems. Under the Code, stores are required to ensure the price-accuracy of their checkout systems and shelf-pricing procedures. Where an error occurs the customer shall be entitled to that item free (or where there are multiple items with identical bar codes, the first free and the others at the lower price). If a dispute related to the Code cannot be resolved at store level, a customer may lodge a formal complaint and have it heard by a committee comprising retailer, government and community representatives. The Code is supported by the Australian Retailers Association (ARA). The Australian Competition and Consumer Commission (ACCC) sees the Code as a positive step by the industry to implement self-regulation to prevent disputes and to introduce a mechanism to deal with disputes when they arise. definitions For the purposes of the Code, the following definitions shall apply: "Computerised Checkout System" means a scanning system which is a complete system for performing the checkout function. Its components usually consist of an in-store controller (computer), check stand terminals similar to a cash register, a scanner which can read bar codes, and the files necessary to operate the system. "Item Price File" means the active list of coded products stocked and the price that the customer is to be charged. "PLU Number" or "Price Look Up Number" means the numerical code used to identify certain items, such as fruit and vegetables, which do not have a bar code affixed. "Shelf Label" or "Shelf Price Label" means any label or sign displayed showing the price of individual items at the place where the product is displayed for sale to the customer. "Shelf Price" is the price of an individual item that appears on a shelf label or shelf price label. "Tobacco Products" means tobacco, cigarette or cigar or any other product containing tobacco and designed for human consumption or use. information for customers 1. Who does the Code cover? The Code covers supermarkets and food stores. Supermarkets who are signatories to the Code include, but are not limited to: Woolworths Supermarkets Coles Supermarkets Bi-Lo Supermarkets Franklins Some stores operated by petrol companies also abide by the Code. Organisations which support the Code include: Australian Retailers Association Master Grocers Association of Victoria

4 code of practice for Computerised Checkout Systems in Supermarkets What The Code covers/does not cover 2.1 The Code applies to all scanned merchandise within the store. This includes: items registered using a Price Look Up (PLU) number instead of a bar code; any item with a bar code, whether the bar code is scanned or the human-readable numerals of the barcode are keyed in by the operator. This includes items which have been marked down for quick sale. Where an item has been marked down for quick sale, the individual price which appears on the item is to be regarded as a shelf price. 2.2 The Code does not cover: liquor products; tobacco products; items which do not have a bar code or PLU number. These are items which carry a price sticker on the item itself, which must be keyed in by the operator, and are not scanned. Such items are referred to as "item priced" and are outside the Code; items where the shelf price is $50 or greater. 3. The Item-Free and Multiple Purchases Policies 3.1 If the scanned price of an item is higher than the shelf price, the customer shall be entitled to that item free. 3.2 Where multiple items bearing identical bar codes, or the same PLU number, are purchased and scan at a price higher than the shelf price, the customer shall be entitled to the first item free and the others at the lower (that is the shelf) price. Where multiple pre-packed items, of the same product, which have a set price per kilo (and therefore do not have an identical bar code) are scanned at a higher price than the shelf price, the customer shall be entitled to the first pack scanned for free and the other packs at the correct price per kilo. 3.3 Where there is a difference between the shelf price and the scanned price of the item, the discrepancy will be remedied immediately by the store. 3.4 A scanning error shall be deemed to have occurred when an item has been scanned or the correct PLU number keyed-in and a price higher than the shelf price is registered on the checkout terminal display. It is not necessary for a customer to have paid for the item or to have left the store to be entitled to receive the item free under the Code. Where an operator error has occurred, that is the wrong PLU number is keyed in or the wrong product is identified by the checkout operator, the consumer is not entitled to the product for free. 3.5 If a customer removes, alters or otherwise interferes with a shelf price label or bar code, the customer loses her/his right to receive the item free. information for retailers 4. Retailer Responsibilities 4.1 Retailers undertake to apply the Code in spirit as well as in the letter, so that high ethical standards are followed by all relevant retailers. 4.2 The retailer is obliged to ensure that the interests of customers are protected by the development of inhouse procedures designed to ensure the integrity and accuracy of computerised checkout systems at all times. 4.3 The retailer will also encourage customer awareness of the Code through the display of signage at each checkout or each entry point to the store. This sign must be clearly visible to customers standing at the checkout or upon entry to the supermarket.

5 5 4.4 Staff are required to be familiar with the provisions of the Code and to ensure that customer inquiries or grievances about the Code are handled in a courteous and efficient manner. The retailer will ensure the maintenance of staff training programs to that end. 4.5 The retailer will maintain supplies of Code information materials and provide customers with a copy of the Code leaflet on request. 4.6 Common sense should dictate the period in which a store will accept a customer complaint. As a guideline for customers and store staff, however, it would be reasonable to deal with a complaint up to one month after the error is alleged to have occurred. (See also Section 10 below). technical requirements 5. Introduction of Computerised Checkout Systems 5.1 When installing a computerised checkout system in an existing store for the first time, the retailer will give at least one month s prior notification to customers by displaying appropriate signs and providing brochures explaining how such systems work and the policies to be followed. 6. Shelf Labels 6.1 The retailer shall ensure that shelf labels are clearly displayed for each item in the store, except where an item is either individually priced, or is pre-packed (and therefore the bar code displays both the price per kilo and the price of the actual item). 6.2 When part of a stock line is reduced in price but stock with the same bar code remains on sale at the shelf price: the bar code of the reduced stock must be defaced in such a manner that it cannot be read by the checkout scanner (the human-readable numerals of the bar code must remain intact); and the item must be individually priced and marked in such a way as to direct the attention of the operator to the fact that it is a marked down item; OR the system must be programmed in a way that prevents the scanning of the item(s) until the price has been confirmed or keyed manually; OR the item should be marked with a special "marked down" or "reduced to clear" (other appropriate words are acceptable) adhesive label; and on fresh packaged food (eg, meat, bakery items, etc.) where possible the label shall be placed on the top surface of the item, adjacent to the scannable price label, but not covering any part of the scannable price label. NB: Stores must be careful not to cover any ingredients listings, use by dates or mandatory labeling requirements. 7. Price Integrity 7.1 The retailer must ensure that: the customer is charged no more than the price on the shelf label or other displayed price; appropriate staff are designated to effect and verify price changes; whenever possible, price changes occur outside normal trading hours. 7.2 Where a price increase is effected during trading hours, the new shelf label must be affixed at least one hour before the item price file is amended. If a customer, aware of the lower price, passes through the checkout after the hour has expired, they shall, on request, be charged the lower price. 7.3 Where a price decrease is effected during trading hours, the item price file must be amended before the new shelf label is affixed.

6 code of practice for Computerised Checkout Systems in Supermarkets Where a price error is brought to the attention of the retailer, the item price file and shelf label shall be brought into line immediately following the same procedures as for price increases or decreases during trading hours. 7.5 Store procedures are to be regularly monitored to ensure that the goal of customer protection is achieved at all times. 7.6 With the withdrawal of copper coins it was necessary to develop Rounding Guidelines to ensure that prices are still fair and accurate, as prices still contain denominations that are no longer in use. Under the Rounding Guidelines the following rounding principles apply to cash transactions: 1& 2 cents rounded DOWN to the nearest 10 3& 4 cents rounded UP to the nearest 5 6& 7 cents rounded DOWN to the nearest 5 8& 9 cents rounded UP to the nearest 10 Where a consumer elects to pay by way of cheque, credit card or EFTPOS it is unnecessary for businesses to round the total value of the transaction, as the consumer is able to pay the exact amount. Rounding on these types of transactions may constitute a breach of the Trade Practices Act. 8. Checkout Operation 8.1 Customers must be able to observe all stages of the checkout registration process from the normal payment position. 8.2 The checkout system must: emit an audible tone indicating that the item has been successfully scanned when the bar code is read by the scanner; display the description and price charged for each item purchased; issue a receipt to the customer. 9. Customer Receipt 9.1 The receipt must: comply with federal, state and local government laws; be clear and legible; except where the price is manually entered, contain a description of the item; contain the price charged for each item; contain the total purchase price for all items; contain the name of the business, including location of the store, and a site specific code identifying the store such as a store number; contain the date of purchase; contain the transaction or register number. 9.2 Item descriptions should: describe the products in their most meaningful way (eg, "tea bags" is more meaningful than "beverage"); include the unit of measurement or size wherever possible; use only abbreviations which are meaningful to the customer. 10. Audit Trails Documentation supporting price change details must be retained for at least one month at either the store or the appropriate State/National Office.

7 7 dispute resolution procedure 11. Administration Committee 11.1 An Administration Committee shall be established in each State and Territory, as required, to consider complaints by customers against retailers Each Administration Committee is to consist of three people. The Committee shall be chaired by the Executive Director (or his/her delegate) of the retailers association in that State or Territory, unless otherwise agreed by the Committee. Each Committee shall also include a representative of an interested State or Territorial government department or agency and a person representative of consumers When a consumer representative vacancy occurs on a Committee an appropriate consumer representative organisation (or organisations) shall be invited to nominate three suitable candidates. The relevant State or Territory retailers association shall then select one of these, providing they meet the conditions outlined below Such nomination(s) shall not be restricted to individuals from the nominating organisations and may include any suitable person, having regard to: the ability of the person: to be well informed and objective; to negotiate and make appropriate compromises; to exercise sound and fair judgment; the person having a close interest in, and commitment to, looking at the issues of concern; no opposition in principle to the industry; an active interest in, and understanding of, the industry; and access to resources and information backing, whether through a consumer/community/public interest group or from the association Should the consumer organisation(s) fail to nominate three suitable candidates within a reasonable time of the request, the relevant state or territory retailers association shall choose an appropriate consumer representative The members of the Administration Committee shall be paid out of pocket expenses by the retail association. 12. Customer Grievances 12.1 Each retailer will ensure that approaches by customers concerning any activities covered by the Code are handled courteously and expeditiously and that any genuine grievances are addressed A customer s grievance should be referred to the store manager or supervisor in the first instance. Where the grievance is not satisfied at store level, the store manager or supervisor is required to inform the customer of the dispute resolution procedures available under the Code If required a Customer Complaint form and a reply-paid envelope must be made available to the customer. Alternatively, the retailer may lodge a written complaint on behalf of the customer or refer the customer to the ARA s customer service hotline or their State or Territory retailers association. (The Association may seek written confirmation of the complaint from the complainant). The customer service hotline number is listed on Code checkout signs and in the customer leaflet. Telephone numbers for retailers associations are listed at the end of this booklet Where a customer s grievance which is referred to the ARAs customer service hotline or a retailers association can not be resolved, the Association shall raise the issue with the head office management/wholesaler of the store which is the subject of the grievance If the issue remains unresolved, and the customer wishes to proceed with the complaint, an Administration Committee will be established in the relevant State or Territory to hear the complaint.

8 code of practice for Computerised Checkout Systems in Supermarkets In considering the complaint, procedures to be followed will be at the discretion of the Committee, but the Committee shall: conduct proceedings in accordance with the rules of natural justice; give each party full details of the issue in dispute; give each party copies of any documents involved; give each party a reasonable chance to place arguments before it; reach a decision within 28 days of the date of receipt of the complaint (by the committee). If the Committee is unable to reach a decision within 28 days the Chairman must report, in writing within seven days of the original deadline, to the Executive Director of the ARA the reasons for the delay At the conclusion of the investigation, the Chairman of the Administration Committee shall, where appropriate, notify the Executive Director of the retail association of the Committee s decision The Executive Director of the appropriate State or Territory retailers association shall notify the customer and the management of the retail company which is the subject of the complaint of the outcome of the investigation and the avenues of appeal which are available. 13. Remedial Action 13.1 Where a complaint referred to an Administration Committee is upheld the Chairman of the Administration Committee shall notify the retailer in writing of the decision and recommended remedial action. If the retailer fails to comply with the recommended remedial action within the specified period of time, or if an appeal has failed, the Executive Director of the appropriate State or Territory retailers association shall immediately issue a warning to the retailer that they are in breach of the Code and request the remedial action set out be undertaken within 28 days Where such a warning is issued and the offending retailer fails to undertake the remedial action set out, within the specified period, notification of the warning shall be published in the next available edition of the Association s newsletter to retailers Should a retailer refuse to take remedial action, or to comply voluntarily with the Code when so requested by the Executive Director of the appropriate State or Territory retailers association, the Committee shall recommend to the ARAs Council: where the matter involves an alleged breach of Commonwealth, State or Territory law, that the appropriate retailers association take action to have proceedings instituted by the relevant authority; or in any other instance appropriate advertising by the signatories to the Code Upon receipt of such a recommendation, the ARAs Council shall call upon the retailer to show within 14 days just cause why such action should not be taken Should the retailer be considered by the Council to have failed to have shown just cause why the recommended action should not be taken, the Council shall take such action as is necessary to implement the recommendation and the retailer shall be levied for any costs involved. 14. Appeal Procedures 14.1 Where a customer or retailer involved in a complaint is dissatisfied with the decision or recommendations of an Administration Committee, they may, within a period of 28 days from the date of the letter of notification of the decision, lodge a written appeal to the Executive Director asking for the matter to be decided by an independent arbitrator Where such an appeal is lodged, the Executive Director will appoint an arbitrator who is acceptable to the parties The hearing by the arbitrator shall be a rehearing of the matter and not a review of the original hearing.

9 Procedures at the hearing will be at the discretion of the arbitrator, but the arbitrator shall: conduct proceedings in accordance with the rules of natural justice; give each party full details of the issue in dispute; give each party copies of any documents involved; give each party a reasonable chance to place arguments before him/her; and deal with the matter as expeditiously as practicable, but within 28 days of the arbitrator s appointment to hear the appeal The arbitrator shall report his/her findings and decision to the Executive Director of the appropriate retailers association in writing not more than seven days after the decision has been reached The Executive Director of the retailers association will notify the parties of the arbitrator s findings and decision and inform them that they may seek redress under any other legal rights they may have but that the retailers association will follow the decision of the arbitrator. industry associations responsibilities 15. Reporting Procedures 15.1 Each State and Territory retailers association shall maintain a record of all formal complaints (that is any written complaint or any grievance which has been referred to the Administration Committee) under the Code and the manner of their resolution. This information shall be forwarded to the ARA at the conclusion of each year The Executive Director of the ARA shall report annually on the operation of the Code, including a summary of each formal complaint received and the subsequent action of the retailers associations, complaints committees and arbitrators to resolve, or rule on, the disputes The report shall be available to any government agency or organisation which has an interest in the Code and its operation. 16. Code Administration 16.1 The Code shall be administered nationally by a National Administration Committee. The National committee shall be chaired by the Executive Director of the Australian Retailers Association and comprise the Executive Directors of each State and Territory retailers association. A representative of the Australian Competition and Consumer Commission may attend as an observer The National Administration Committee will also include a consumer representative When a vacancy for a consumer member occurs the same procedure shall be undertaken as when a consumer representative vacancy occurs on a State or Territory Administration Committee (see Section 11) The National Administration Committee must meet a minimum of twice a year, and is responsible for monitoring the Code and compliance of retailers nationally and making recommendations to the Council of the ARA on any changes to the Code or the issuing of guidelines. 17. Review and Evaluation of the Code of Practice 17.1 The National Administration Committee shall keep the Code under continuous review. The Australian Retailers Association will conduct regular reviews and will consult with the Australian Competition and Consumer Commission on review findings. The ACCC will comment on the Code review Amendments will be made to the Code only after an appropriate inquiry. Inquiries may be held into the Code at any time at the initiative of the National Administration Committee, which will invite appropriate interested parties to make submissions, written, oral or both, on the issues under review and make such other inquiries as it sees fit.

10 code of practice for Computerised Checkout Systems in Supermarkets The National Administration Committee shall make final recommendations and report them to the Council of the ARA. The Council must vote on the adoption of each recommendation. Approval is by simple majority The Executive Director of each State and Territory retailers association shall notify appropriate individuals and organisations of any changes to the Code. 18. Retail Association Directory Australian Retailers Association Level 11, 45 Market Street Sydney NSW 2000 Customer service hotline: Fax: (02) State Offices: Queensland Customer service hotline: New South Wales Level 11, 45 Market Street Sydney NSW 2000 Tel: (02) Western Australia Level 3, 180 Hay Street East Perth WA 6004 Tel: (08) South Australia 60 Halifax Street Adelaide SA 5000 Tel: (08) Victoria Level 2, 104 Franklin Street Melbourne VIC 3000 Tel: (03) Tasmania 147 Davey Street Hobart TAS 7000 Tel: (03) Northern Territory 5/2 Shepherd Street Darwin NT 0801 Tel: (08) ACT 12a Thesiger Court Deakin ACT 2600 (02)

11 Retailer Commitment The retailer endorses the Code of Practice for Computerised Checkout Systems in Supermarkets 2004 and agrees to abide by the requirements/obligations of the Code. Signed for and on behalf of... Name of Retailer Address of Retailer By an authorised officer in the presence of Signature of witness Signature of authorised officer Name of witness (print) Name of authorised officer (print) Date Office held Please send a copy of the completed Retailers Commitment to: Executive Director Australian Retailers Association Level 11, 45 Market Street Sydney NSW 2000 Fax: (02)

12