Home Depot Settles Lawsuit for Overcharging Customers

Home Depot, the fifth largest retailer in the nation, has settled a civil law enforcement complaint that alleges the company engaged in false advertising and unfair competition.

• The retailer will pay $1,977,251 to the Los Angeles County District Attorney's office.
• The settlement resolves allegations of "scanner violations," where the price listed on the item or shelf tag differed from the price scanned at the register.

Home Depot's Scanner Violations

The civil complaint alleges that Home Depot engaged in "scanner violations," where the price listed on the item or shelf tag was different from the price that was scanned at the register.

• This resulted in customers paying a higher price than Home Depot's lowest advertised or posted price.

Los Angeles County District Attorney's Investigation

The Los Angeles County District Attorney's office investigated the allegations and found that Home Depot had engaged in scanner violations.

• The District Attorney's office said in a press release that Home Depot was "cooperative in the investigation and has taken steps to correct the violations."

Home Depot's Response

While Home Depot admitted no wrongdoing, they have agreed to pay the $1.9 million settlement to resolve the allegations.

• This settlement is likely a small amount for Home Depot, which recently announced an $18.3 billion acquisition of building-projects supplier SRS Distribution.

Implications for Home Depot

This settlement highlights the importance of accurate pricing for retailers, especially those as large as Home Depot.

• It serves as a reminder that retailers can be held accountable for overcharging customers, even if unintentional.

Key Takeaways

This case demonstrates the consequences of price discrepancies for retailers.

• Home Depot's settlement highlights the importance of accurate pricing practices to avoid legal complications and maintain customer trust.