Home Depot to pay nearly $2M to settle suit alleging it overcharged customers

Home Depot has agreed to pay nearly $2 million to settle a lawsuit that accused the home improvement retailer of false advertising and overcharging customers.

The company will pay $1,977,251 to settle the civil complaint, which was filed on behalf consumers by multiple district attorneys across California.

The lawsuit alleged that the DIY chain charged customers prices that were higher than its lowest advertised or posted price. Officials referred to the issue as a “scanner violation,” in which an item’s price after it was scanned during checkout differed from its listed price or shelf tag.

Los Angeles County District Attorney George Gascón was among the statewide officials that announced the settlement Thursday.

In a news release, Gascón said false advertising and unfair competition practices are “serious offenses that undermine consumer trust and distort the marketplace.”

Home Depot was ordered to pay $1.7 million in civil penalties and $277,251 in restitution and costs of pursuing the investigation.

The settlement was agreed to on Aug. 26 in San Diego County. As part of the terms of the settlement, Home Depot did not admit wrongdoing but was prohibited from engaging in false or misleading advertising and charging more than an item’s lowest posted price.

Home Depot is also required to implement a price accuracy program, including more audits and training, and eliminate price increases on weekend days, which is in line with state requirements regarding pricing accuracy, the D.A.’s Office said.

“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 said. “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.”

Earlier this year, Home Depot agreed to pay $750,000 to settle another lawsuit which alleged that the company did not follow California’s laws regarding gift card redemption.

Officials said the home repair retailer was cooperative in both investigations.

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