Home Depot to Pay $2 Million Settlement in California for Overcharging Customers, District Attorneys George Gascón and Summer Stephan Announce
Fiona Nanna, ForeMedia News
5 minutes read. Updated 8:21PM GMT Sat, 14 September, 2024
Home Depot, one of the largest home improvement retailers in the United States, has agreed to pay nearly $2 million to settle a civil enforcement claim from California district attorneys. The lawsuit accused the company of engaging in false advertising and unfair competition, practices that have led to widespread consumer dissatisfaction.
According to the complaint filed in San Diego Superior Court, Home Depot was charging customers higher prices at checkout than those displayed on shelf tags or on the items themselves, a violation known as “scanner violations.” These discrepancies prompted an investigation led by the Los Angeles County District Attorney’s office, which culminated in Thursday’s announcement of the settlement.
While Home Depot has not admitted to any wrongdoing, it has agreed to pay $1.7 million in civil penalties and an additional $277,251 to cover investigative costs. This settlement also aims to support future enforcement of California’s stringent consumer protection laws. As part of the ruling, Home Depot must now implement a price accuracy program to prevent further scanner violations.
“False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace,” said Los Angeles County District Attorney George Gascón in a statement. He emphasized the importance of ensuring that consumers pay the prices they expect and that companies are held accountable when they fail to comply with fair practices.
Home Depot has not yet responded to requests for comment, although the Los Angeles DA’s office noted that the company was cooperative throughout the investigation.
For Home Depot, the settlement is a relatively minor financial setback compared to its overall business operations. In March, the retailer announced a major acquisition of SRS Distribution, a leading supplier for building projects, for $18.3 billion. This deal underscores Home Depot’s continuing expansion in the professional contractor market, targeting customers such as roofers, landscapers, and pool contractors.
Meta Description: Home Depot agrees to pay a $2 million settlement for overcharging customers in California. The company will implement a price accuracy program to address scanner violations.
