Last week, a prominent hardware retailer was ordered to pay nearly $2 million following claims of false advertising and overcharging customers.
The settlement arises from a civil enforcement case initiated by several district attorneys, who accused the company of unfair competition and deceptive pricing practices.
Inspections revealed numerous instances of inaccurate pricing and absence of price displays for specific products. This led to shoppers being overcharged.
The complaint, filed in San Diego Superior Court, alleged that customers were often charged more at the register than the prices displayed on shelf tags or the products themselves. These discrepancies, known as “scanner violations”, resulted in unexpected higher prices for shoppers.
While the retailer admitted no wrongdoing, it was ordered to pay $1.7 million in civil penalties and additional $277,251 to cover investigation costs and future consumer protection. The company is also required to implement a price accuracy programme to prevent further errors.
“False advertising and unfair competition undermine consumer trust and distort the marketplace,” said Los Angeles County District Attorney George Gascón, stressing the importance of accurate pricing.
Overcharging at the checkout is more common than many shoppers realise.
The UK’s Competition and Markets Authority (CMA) found that 60% of pricing errors result in overcharging. Their investigation covered 139 grocery stores across England and Wales, including major chains and independent retailers.
The findings revealed that pricing inaccuracies were particularly common in fresh produce and promotional items. Shoppers often encountered discrepancies between advertised and actual prices at the register.
The Home Depot settlement is not unique. Other major chains have also faced accusations of overcharging customers.
In October 2022, Walmart faced a lawsuit alleging false inflation of product weights, causing customers to pay more than necessary. Despite denying the claims, Walmart settled the case for a multi-million dollar amount.
Experts suggest a few simple steps to protect against overcharging. Shoppers should double-check that the shelf label price matches the register price.
If discrepancies arise, alerting a manager or sales assistant is recommended. Additionally, using store scales to weigh items before purchase can help ensure correct pricing.
Checking the edges of scales for interference and raising issues with store staff immediately is also advisable. Even if a sale has expired, retailers must often honour the displayed price.
The settlement represents a crucial step towards safeguarding consumers from unfair practices, but its long-term effects remain uncertain. The retailer’s price accuracy programme will be monitored to ensure compliance.
Consumers are urged to remain vigilant and always inspect their receipts to avoid being overcharged.
The $2 million settlement highlights the importance of accurate pricing and consumer protection in retail.
While the financial penalties and price accuracy programme are positive steps, shoppers must continue to scrutinise their receipts to ensure they are charged correctly.
