A federal appeals court ruled last week that a proposed class action lawsuit should go forward, reversing the decision of a lower court.
The suit, filed by plaintiff Yoram Kahn from the Cleveland area, alleges that Walmart conducted a fraudulent “bait-and-switch” when it came to pricing and that the practice violated several states’ consumer protection laws, Reuters reported.
Walmart also claimed that receipts provided after checkout negated any potential unfairness ofter the discrepancy between shelf prices and the actual charged price. That claim was thrown out by Circut Judge David Hamilton who wrote in his decision that it was “neither ‘unreasonable’ nor ‘fanciful’” for customers to believe that what was listed on the shelves would be what they were charged for items.
The issues with the prices were found in several states including Florida, Illinois, Indiana, Maryland, New Jersey and New York. Walmart had been fined in 2022 by North Carolina regulators for price-scanning issues, Reuters reported.
The discrepancies were usually less than a dollar. One New Jersey store had Crisco Pure Canola Oil listed as $3.12 but it rang up at $3.64. Another store listed Hershey’s Chocolate Syrup at $2.33 but it rang up for $2.48.
Kahn, in the suit, said that he paid “$1.89 in over charges” on six of 15 items, or seven percent of his pretax total when he shopped at a store in Niles, Illinois, on Aug. 2, 2022, KNWA reported.
“Small change for Kahn as an individual, no doubt, but keep in mind the volume of Walmat’s business,” the suit said.
KNWA contacted Walmart for a response to the court’s decision. The company told the news station, “We’ll always work to provide our customers everyday low prices they can count on. We are confident in the evidence and look forward to arguing our case.”
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