Summary of Home Depot to pay nearly $2 million to settle suit alleging it overcharged shoppers

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    Home Depot Settles Price Discrepancy Lawsuit over Checkout Prices

    Home Depot, the world's largest home improvement retailer, has agreed to a nearly $2 million settlement in a lawsuit alleging that it overcharged customers by having higher prices at checkout than the advertised prices on items or shelf tags.

    • The lawsuit was filed by prosecutors in six California counties: Los Angeles, San Diego, Orange, Alameda, San Bernardino, and Sonoma.
    • The alleged "scanner violations" resulted in customers paying more than the advertised prices when barcodes were scanned at checkout.
    • Home Depot denied any wrongdoing but agreed to the settlement, which was approved by a judge.

    Settlement Terms and Consumer Protection Measures

    As part of the settlement, Home Depot has agreed to implement several measures to ensure price accuracy and consumer protection:

    • Always use the lowest advertised prices on items and shelf tags.
    • Hire an executive-level internal price watchdog.
    • Assign price accuracy checks to managers in every California store.
    • Make records of price accuracy available to prosecutors.

    Distribution of Settlement Funds

    The $2 million settlement will be distributed as follows:

    • $1.7 million to be divided among the district attorneys' offices of the six counties involved for consumer law enforcement.
    • $177,251.28 for consumer regulators in those counties, as well as Sacramento County.
    • $50,000 to an agricultural consumer watchdog nonprofit.
    • $50,000 to a trust fund to prosecute those who rip off consumers.

    Prosecutors' Stance on Price Discrepancies

    Los Angeles County District Attorney George Gascón, representing the lead plaintiff, suggested that the price discrepancies were not an oversight, stating:

    "When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently."

    Home Depot's Response and Financial Performance

    In response to the settlement, Home Depot stated: "To ensure consistency for our customers, we've updated the timing of our price changes."

    According to a proxy statement, Home Depot reported nearly $22 billion in operating profit for the 2023 fiscal year.

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