The Home Depot will pay close to $2 million after a civil complaint revealed the retail giant had mismatched pricing information.
According to a news release from the Los Angeles County District Attorney's office, the civil complaint alleged that Home Depot charged customers prices higher than its lowest advertised or posted price. Often called a “scanner violation,” the problem occurs when the price on the item, or on the item’s shelf tag, is not the same once the UPC code is scanned at the point-of-sale device or register.
“False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace,” District Attorney Gascón said. “When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently."
The company did not admit wrongdoing. The district attorney's office said Home Depot was "cooperative in the investigation" and has taken steps to correct the violations.
The judgment requires Home Depot to pay $1.7 million in civil penalties and $277,251 in costs and restitution to cover investigation costs and support future enforcement of consumer protection laws.
"This settlement is a clear message that such behavior will not be tolerated and underscores our commitment to safeguarding the rights of consumers in our community," said Gascón.
Under a judgment negotiated with the company entered on Aug. 26, Home Depot was prohibited from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. It requires the implementation of a price accuracy program, which adds more audits and training, and eliminates price increases on weekend days. The judgment adheres to California’s pricing accuracy requirements.
The action was filed in San Diego Superior Court by the San Diego County District Attorney’s Consumer Protection Unit along with LADA’s Consumer Protection Division and District Attorneys of Alameda, Orange, San Bernardino, and Sonoma counties.
