Home Depot Allegedly Overcharged Customers and Must Pay $2 Million

Home Depot is paying a settlement of nearly $2 million after the retailer allegedly overcharged its customers. A civil suit filed in California accuses the home improvement chain of “scanner violations,” which is when a product’s advertised shelf price is not the same when the item’s universal product code is scanned at the register.

“When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently,” said Los Angeles County District Attorney George Gascón, per FOX Business. 

While the retailer denied any wrongdoing, Home Depot began negotiating with district attorneys late last month. Ultimately, a court ordered an immediate cease to “false or misleading advertising” as well as payments of $1.7 million in fines plus costs and restitutions amounting to $277,251. The retailer must also create a price accuracy program that prohibits adjusting prices upward on weekends and adds more employee training and audits.  

“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,” said Gascón in a statement.

The lawsuit was a joint effort among several county district attorney offices, including Alameda, Los Angeles, Orange, and Sonoma. The initial complaint was filed in the San Diego Superior Court after an investigation by several Weights and Measures departments looked into the matter. The Los Angeles DA noted that Home Depot was very cooperative during the investigation.

While Home Depot shells out nearly $2 million, it is also dealing with declining profits. In August, the retail giant released a dismal earnings report revealing that sales dropped 3.3% last quarter. The company blamed weak demand as customers hold off on home improvement projects.

Despite potential legal and financial issues, Home Depot isn’t about to go anywhere. It’s likely the retailer will weather the storm as inflation fears begin to subside and the prospect of lower loan interest rates will lure eager customers back into stores.