Home improvement giant Home Depot has agreed to pay about $2 million to settle civil lawsuits brought by multiple California district attorneys that allege the company engaged in false advertising and unfair competition.
The company must pay $1.7 million in civil penalties, as well as $277,251 for investigation costs and to “assist in the future enforcement of consumer protection laws.” Home Depot did not admit to wrongdoing but cooperated with the investigation, according to a news release from the Los Angeles County District Attorney's Office.
“False advertising and unfair competition are serious crimes that undermine consumer trust and distort markets,” said Los Angeles County District Attorney Gascón. statement.
The lawsuit alleges that Home Depot customers are bringing items to the register where the prices are higher than what's listed on the shelves. These are called “scanner violations,” according to the district attorney's office.
“When companies engage in deceptive behavior, they not only deceive consumers, but they also gain an unfair advantage over companies that operate ethically and transparently,” Gascón said. “This settlement sends a clear message that such behavior will not be tolerated and underscores our commitment to protecting the rights of consumers in our community.”
Home improvement retailers must implement price accuracy programs, “increase audits and training, and eliminate weekend price gouging.” In early July, the company Agreed The company will pay $750,000 to settle a lawsuit alleging it didn't comply with California law regarding gift cards.
The Hill has reached out to Home Depot for comment.
