Home Depot has agreed to pay nearly $2 million to settle a civil enforcement claim filed by California district attorneys over allegations of false advertising and unfair competition.
The case, filed in San Diego Superior Court, accused the home improvement retailer of overcharging customers at checkout for items that were priced lower on shelves or item tags.
The issue, known as “scanner violations,” involves discrepancies between posted prices and those charged at the register. The investigation, led by the Los Angeles County District Attorney’s office, revealed that customers were frequently charged more than the displayed price, leading to the civil enforcement action.
Home Depot has not admitted to any wrongdoing but will pay $1.7 million in civil penalties and an additional $277,251 to cover investigation costs and fund future consumer protection efforts. The settlement also requires the company to implement a price accuracy program, which will include additional audits, training, and measures to prevent price increases on weekends.
Los Angeles County District Attorney George Gascón emphasized the significance of the case.
“False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace,” he stated.
Although Home Depot has not commented publicly, the company was reportedly cooperative during the investigation and has made changes to ensure price consistency.
With input from the Sun, FOX Business, and ABC7.
