Home Depot Agrees to $2M Settlement Over Allegations of Overcharging, Unfair Competition

Home Depot, one of the largest home improvement stores in the US, has agreed to pay almost $2 million to settle a case brought by several California district attorneys.

The case claimed that the company engaged in unfair business practices and false advertising by charging customers higher prices at checkout than what was shown on store shelves.

Home Depot's Pricing Discrepancies

The lawsuit revealed that customers were often charged more than the price listed on the shelf, an issue known as "scanner violations." While Home Depot did not admit to doing anything wrong, the company cooperated fully with the investigation, according to The Hill.

As part of the settlement, Home Depot will pay $1.7 million in penalties and $277,251 to cover the costs of the investigation. The funds will also be used to support future enforcement of consumer protection laws. Despite the large settlement, it is small in comparison to the size of Home Depot's business, which recently made headlines for its $18.3 billion acquisition of another company.

Los Angeles County District Attorney George Gascón emphasized that false advertising and unfair competition harm consumers and create an uneven playing field in the market. He noted that the settlement sends a strong message to other businesses, signaling that California will not tolerate deceptive practices.

Home Depot Commits to Price Accuracy Program

As part of the settlement agreement, Home Depot has committed to implementing a price accuracy program. This program includes more frequent audits, better training for employees, and a policy preventing price changes on weekends, which is expected to ensure that customers are always charged the correct price.

A spokesperson for Home Depot acknowledged the issue and confirmed that the company has adjusted its price change schedule to make sure customers experience more consistent pricing. These steps are part of Home Depot's broader effort to fix the pricing problems and avoid similar issues in the future.

In addition to this case, Home Depot also recently settled another lawsuit, agreeing to pay $750,000 in July to resolve claims that it had not complied with California's laws about gift cards. Although these legal issues have surfaced, Home Depot remains a major force in the home improvement retail market.