Home Depot shoppers may have been overcharged at the register, unbeknownst to them. After an investigation into pricing practices, the home improvement giant has agreed to settle allegations of misleading price tags and false advertising.
The Los Angeles District Attorney’s office announced last week that Home Depot will pay nearly $2 million to put the civil law enforcement case to bed. The judgment requires $1.7 million in fines for violating consumer protection laws, plus another $277,000 for investigation costs and victim restitution.
District Attorney George Gascón said the settlement aims to discourage companies from tricking buyers. “False advertising and unfair competition are serious offenses that undermine consumer trust,” he stated.
The allegations claim Home Depot charged customers more at checkout than the lowest sticker price or advertised price for products. For instance, a shelf could say $4.99 while the scanner rings up $5.49. This “scanner violation” means the consumer pays extra without knowing it.
California laws protect shoppers requiring businesses to charge no more than the lowest clearly marked price.
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As part of the judgment, Home Depot must now double down on price accuracy with further auditing and staff training. The company also agreed to ax its practice of bumping up prices on weekends – when mistakes could go unnoticed in busier stores.
While Home Depot didn’t admit guilt, officials said the company cooperated fully in the investigation and already fixed its violations.
Deputy DA Michael Sachs, however, said the case should discourage other major chains from similar deception. “No company is above the law, no matter how large or small,” he remarked.
The judgment against Home Depot brings together District Attorneys from Los Angeles and surrounding counties in a wider effort to fight false advertising. Officials urge shoppers to speak up about potential pricing errors.
For unwitting customers, the several million dollars won’t refund their pocket change. But for attorneys it shows no retailer is too big to tackle when consumer rights are on the line.
Related: WalMart to Pay $45 Million For Overcharging Customers
