Home Depot Ordered To Pay Nearly $2M In Settlement Over False Advertising

The home improvement store will pay out nearly $2 million despite refusing to admit any wrongdoing.

Home Depot has settled a civil enforcement claim over false advertising and other misleading business practices. The home improvement store will pay out nearly $2 million despite refusing to admit any wrongdoing.

District attorneys in California initially filed the complaint in San Diego Superior Court. According to the District Attorney’s Office in Los Angeles County, Home Depot allegedly duped customers into paying more than a product’s advertised price. Deemed a “scanner violation,” the product’s shelf tag would not ring the same at the register due to a pricier UPC code.

An attorney leading the case, George Gascón, called the settlement a “clear message” that these unlawful practices by large businesses will not stand.

“False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace,” explained District Attorney Gascón in the news release. “When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently. 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.”

The company entered negotiations with the district attorneys on Aug. 26. As a result, the judgment ordered Home Depot to pay $1,700,000 plus an additional $277,251 for investigation costs and restitution. The extra charge will also support the enforcement of consumer protection laws.

Moreover, Home Depot is prohibited from promoting false advertising and charging more for an item than displayed. The judgment also ordered that they introduce a price accuracy program. This includes more audits and training while also eliminating increased prices on weekdays.

However, an admission of guilt was not among the requirements, as Home Depot did not confirm wrongdoing. The LADA noted that the company, which identifies as the world’s largest home improvement retailer, was cooperative throughout the investigation.