Home improvement company Home Depot agreed to pay nearly $2 million to settle a civil complaint from multiple California district attorneys, alleging the company took part in false advertising and unfair competition.
The company has to pay $1.7 million in civil penalties as well as $277,251 to cover investigation costs and “support future enforcement of consumer protection laws.” Home Depot did not admit wrongdoing, but was cooperative in the investigation, according to the Los Angeles County District Attorney Office’s news release.
“False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace,” Los Angeles County District Attorney Gascón said in a statement.
The lawsuit said that Home Depot customers would bring items to the checkout and the price of the item would be higher than what was listed on the shelf. Those are called “scanner violations,” according to D.A.’s Office.
“When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently,” Gascón said. “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 home improvement retailer has to implement a price accuracy program that will add “more audits and training and eliminates price increases on weekend days.” In early July, the company agreed to pay $750,000 to settle a lawsuit alleging it did not adhere to California’s state law regarding gift cards.
“To ensure consistency for our customers, we’ve updated the timing of our price changes,” a Home Depot spokesperson told The Hill in a statement.
