The lawsuit against Home Depot indicting it for false advertising and overcharging its customers has been settled, and the home improvement retailer has agreed to pay nearly $2 million.
Home Depot will pay exactly $1,977,251 to settle the civil complaint, which was instituted by several district attorneys’ offices in San Diego, Alameda, Los Angeles, Orange, San Bernardino, and Sonoma counties across California on behalf of the consumers.
Home Depot to Pay Nearly $2 Million
The prosecutors alleged that the retail giant had employed what is known as scanner violations to charge more than the posted prices on the items. The prices listed on the products on the shelves are different from the prices seen when the items are scanned at the payment counter.
Home Depot settled the claims without admitting any liability or wrongdoing. The retail giant will pay $1,700,000 in civil penalties, plus $277,251 to cover the prosecutors’ investigatory costs and also bankroll other consumer protection enforcement efforts.
Home Depot will also enforce new price accuracy policies, negate the practice of price increases on weekend days, and establish audits and training on state pricing accuracy requirements. The company will also not engage in misleading or deceptive advertising.
The settlement was announced by George Gascón, the district attorney for Los Angeles County, on Thursday. He also stated that false advertising and unfair competition eroded consumer trust and distorted the marketplace, and these are serious offences.
Gascón said, “When companies engage in deceptive practices, they not only cheat consumers but also gain an unfair advantage over honest businesses. This settlement sends a clear message that such behaviour will not be tolerated. We are committed to protecting the rights of consumers in our community.”
Home Depot was slapped with another lawsuit about violating California’s gift card redemption rules and had to pay $750,000 earlier this year to settle the complaint.
The authorities, however, conceded that Home Depot cooperated fully with both investigations, and this could be one of the reasons why a settlement was reached in the case.
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