In all Canadian provinces except Quebec, shoppers are entitled to compensation for scanning errors made at retailers that support "The Scanner Price Accuracy Voluntary Code."

That code is the result of a collaborative effort to eliminate price-scanning errors spearheaded by the Retail Council of Canada (RCC), the Canadian Association of Chain Drug Stores (CACDS), the Canadian Federation of Independent Grocers (CFIG) and the Canadian Council of Grocery Distributors (CCGD).

If the scanned charge is higher than the price displayed inside a participating store, the cashier can:

• Give out for free a mispriced item that costs $10 or less.
• Apply a cash credit of $10 per mispriced item that costs over $10.

Merchandise eligible for reimbursement
Freebies and cash rebates apply to many products bought at participating grocery, drug and general merchandise stores. However, the code excludes:

• Items with price tags.
• Items that are not easily accessible to the public, such as prescription drugs.

If you have two or more identical purchases in your shopping cart that scan for prices higher than displayed in-store, only the first item will be free or qualify for an award under the voluntary scanning accuracy program. Other identical mispriced products on the same bill are charged the lower price, without extra compensation. For example, 10 different items costing over $10 each that scan for higher prices generate $100 in cash credits, while 10 identical items result in just one $10 rebate.

Tip: Eligible scanning errors also exclude pricing inconsistencies with online flyers and internet ads.

Scanning errors to watch for
The retail association's latest annual report reveals that auditor The Neilsen Company found a 2.42 per cent error rate on scanned goods tested from July 2009 to June 2010. However, 60 per cent of scanning mistakes involved lower scanned prices that favoured consumers. Still, scanning overcharges produce one potential freebie or cash rebate per 100 scans. The report also shows that 70 per cent of scanning discrepancies at checkout were due to incorrect shelf price stickers, rather than in-store flyers or other posted signage.

Based on annual report data, CreditCards.ca independently calculated that over two-thirds of scanning errors happen at grocery stores. Given that food items, from cheese sticks to fresh produce, typically have bar codes but no price stickers, keeping an eye on the scanner display for grocery overcharges yields the greatest number of chances for compensation.

Drug store purchases account for about 12 per cent of scanning errors, so also be alert for overpriced pharmacy goods, such as toothpaste, mouthwash and cosmetics.

Tip: Be prepared to prove your claim with specifics on incorrect price displays.

How to claim compensation
At most participating stores, front-line cashiers are authorized to instantly award freebies and cash credits.

If the cashier fails to conform to the voluntary code, your next step is to speak with the store manager or supervisor. If dissatisfied with management's proposal, you may then register a complaint with the Scanner Price Accuracy Committee, using their toll-free number (1-866-499-4599).

The toll-free service follows up on all complaints, usually by the end of the next business day. After addressing your concerns with the retailer, a committee representative will notify you of the outcome. From July 2009 to June 2010, the price accuracy committee resolved all 681 complaints registered with them.

Tip: To support your case, keep the cash register receipt and any credit card transaction slip.

Participating retailers
The 2010 annual report identifies 23 major Canadian grocery, drug store and general merchandise chains that have signed on to the scanned-price code. Countrywide participants include:

• Best Buy.
• Canadian Tire.
• Costco.
• Home Depot.
• Loblaw.
• Metro Inc.
• Shoppers Drug Mart.
• Sobeys.
• Thrifty Foods.
• Walmart Canada.

Big retail chains account for some 8,000 outlets across Canada that honour the scanner-accuracy program. In addition, almost 2,700 independent stores offer freebies and cash rebates to compensate for eligible scanning errors.

Compensation for scanned-price mistakes is a win-win business practice. Incentives keep consumers feeling positive about retailers striving to improve scanned-price accuracy, while motivating shoppers to return to stores that offer this extra layer of customer service. 

Tip: Verify in advance a particular store's policy on compensating scanner mistakes.

See related: How to claim old bank account money; Cash refunds from credit card price protection