In order to resolve a lawsuit accusing the home improvement shop of misleading consumers and overcharging them, Home Depot has agreed to pay close to $2 million.
In order to resolve the civil action, which was brought on behalf of customers by several district attorneys around California, the corporation will pay $1,977,251.
The DIY chain was accused in the case of charging clients prices higher than its lowest posted or advertised pricing. The problem, which differed from the item’s quoted price or shelf tag after it was scanned during checkout, was called a “scanner violation” by officials.
George Gascón, the district attorney for Los Angeles County, was one of the state representatives who made the settlement announcement on Thursday.
False advertising and unfair competition are “serious offenses that undermine consumer trust and distort the marketplace,” according to a press statement from Gascón.
Home Depot was mandated to pay $277,251 in restitution and investigative fees in addition to $1.7 million in civil penalties.
On August 26, San Diego County agreed to the deal. As part of the settlement agreement, Home Depot was forbidden from charging more than an item’s lowest stated price and from participating in deceptive or misleading advertising, even though it did not acknowledge any wrongdoing.
In accordance with state regulations pertaining to pricing accuracy, Home Depot must also establish a price accuracy program that includes further audits and training, as well as do away with price hikes on weekends, according to the D.A.’s Office.
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“When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently,” Gascón stated. “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.”
Home Depot consented to pay $750,000 to resolve a complaint filed earlier this year alleging that the business violated California’s gift card redemption regulations.
Authorities stated that the retailer of home repair supplies cooperated with both investigations.
