Qitzur Shulchan Aruch – 62:11

יא: חיבים ראשי הקהל להעמיד ממנים שיהיו מחזרים על החניות. וכל מי שנמצא אתו מדה חסרה או משקל חסר או מאזנים מקלקלים, רשאים להכותו ולקנסו כנראה בעיניהם

The heads of the community are obligated to appoint supervisors who will audit the shops. And whomever is found having with him a defective measure, deficient weight or crooked scale, they are entitle to beat him or hit him as they see fit.

Since the impact of dishonesty in business is communal, the community has a duty to enforce honesty amongst the individual storekeepers.

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