SALT LAKE CITY — Utah's Division of Consumer Protection is advising retailers across the state to have a plan when pennies disappear.
The Trump administration has decided that pennies will no longer be minted. As a result, they will start disappearing and the agency wants to ensure customers don't get short-changed.
"This is about transparency to the consumer," Katie Hass, the executive director of the division, said in an interview Friday with FOX 13 News. "We’re talking about only cash purchases. If you go in and someone pays in cash and you don’t have the exact change to give them? We are recommending you clearly and conspicuously inform the consumer about how you intend to round."
The Utah Division of Consumer Protection has gone so far as to publish a guide and a template flier they want retailers to display at cash registers or the entrance to a store so customers know their purchase may be rounded up or down if there's no longer exact change. That way they can decide if they wish to pay with credit or debit cards or another form of electronic payment.
The agency has even published its own recommendation. For example, if a $10 purchase comes out to $10.02 with sales tax? Round down. If it's $10.03? Round up to $10.05.
"Whatever rounding method the business uses is fine," Hass said. "They just have to be clear about that upfront."
Haas said failure to disclose a rounding policy for pennies or being deceptive could violate Utah law on deceptive practices.
"This is so you are transparent with consumers from the outset. Everyone understands expectations. People have choice to use cash or another form of payment," Hass added.
US Mint in Philadelphia presses final pennies as the 1-cent coin gets canceled:
The agency also tells retailers they must apply the sales tax before they do any rounding. The Utah State Tax Commission and Utah's Department of Government Operations have also been involved in the penny policy.
Utah is believed to be the first state to give guidance on what to do with pennies disappearing. Dave Davis, the president of the Utah Retail Merchants Association, an industry group for retailers, said it will become a bigger issue and he has tried to warn his members to get ready now.
"We have been talking to our members and we’ve been telling them to do two things: One, be transparent with your consumers exactly how you’re gong to round these transactions and number two, be fair," he said Friday.
Davis said the state's guidance is good.
"We salute them for doing it. I think it’s a great template for retailers that are trying to figure out what are we going to do," he said.
Some retailers FOX 13 News contacted on Friday did not know or declined to comment on what they would do now that pennies are no longer being minted. Harmons Grocery said it is beginning to display signs about rounding.
"At this time, Associated Food Stores' corporate stores are still using pennies, but they are prepared to handle cash transactions once pennies are no longer available," the grocery chain said in a statement to FOX 13 News late Friday, adding it has decided to follow the guidance from the Utah Division of Consumer Protection and will have signage, staff training and give consumers the option to cancel a transaction without consequence.
"Our goal is to make this change as seamless as possible while continuing to provide the value and service our customers expect."
