Home Depot must pay nearly $2 million to settle a lawsuit that alleged it charged customers higher prices than it advertised, California officials announced last week.
The lawsuit alleged the home improvement store was engaging in "scanner violations," meaning Home Depot would charge a different amount at checkout than it listed on the item or its shelf tag, according to the Los Angeles District Attorney's Office.
In August, a San Diego judge prohibited the company from engaging in false advertising or price difference postings from posting to point-of-sale and required it to implement a price accuracy program, which forces the company to adhere to the state's pricing accuracy requirements, forbids price increases on weekends and adds audits and trainings, the DA's office said.
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Though it's admitted to no wrongdoing in the settlement, Home Depot must now pay $1.7 million in civil penalties and $277,251 in costs and restitution "to cover investigation costs and support future enforcement of consumer protection laws," District Attorney George Gascón said.
"False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace," District Attorney Gascón said. "When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently. 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."
Scripps News has reached out to Home Depot for comment but has not yet heard back.
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