Home Depot settles pricing lawsuit
In a case that demonstrated the pitfalls of inaccurate and mismatched pricing, the Home Depot will pay nearly $2 million to settle a civil complaint arising in California and related to overcharging at the checkout.
According to the Los Angeles County District Attorney’s Office, the complaint alleged that Home Depot charged customers prices higher than Home Depot’s 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.
The Atlanta-based retail giant did not admit wrongdoing. It was cooperative in the investigation and has taken steps to correct the violations, according to the DA’s office.
The Aug. 26 negotiated judgment requires Home Depot to pay $1,700,000 in civil penalties and $277,251 in costs and restitution to cover investigation costs and support future enforcement of consumer protection laws.
Also, 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.
