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September 12, 2024: Home Depot Settles Lawsuit Alleging Overcharging and False Advertising
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Company to Pay Nearly $2 Million to Settle Civil Complaint
SAN DIEGO, CA- Los Angeles County District Attorney George Gascón announced today that Home Depot will pay $1,977,251 to settle a civil law enforcement complaint alleging the company engaged in false advertising and unfair competition.
“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. 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.”
The civil 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.
Under a judgment negotiated with the company entered on Aug. 26 in San Diego County Superior Court and signed by Judge Richard S. Whitney, 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 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.
The company did not admit wrongdoing. It was cooperative in the investigation and has taken steps to correct the violations.
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.
