September 12, 2024 – SAN DIEGO, CA- Los Angeles County District Attorney George Gascón announced today that Home Depot will pay $1,977,251 to settle a civil lawsuit alleging The company engaged in misleading advertising and unfair competition.

“Misleading advertising and unfair competition are serious offenses that undermine consumer confidence and distort the market,” said District Attorney Gascón. “When companies engage in deceptive practices, they not only defraud consumers, but also gain an unfair advantage over companies that operate ethically and transparently. This settlement sends a clear message that such behavior will not be tolerated and underscores our commitment to protecting consumer rights in our community.”

The civil suit alleged that Home Depot charged customers higher prices than Home Depot’s lowest advertised or posted price. The problem, often referred to as a “scanner violation,” occurs when the price on the item or on the item’s shelf label is not the same when the UPC code is scanned at the checkout machine or cash register.

Under a negotiated ruling with the company, entered in San Diego County Superior Court on August 26 and signed by Judge Richard S. Whitney, Home Depot is prohibited from engaging in false or misleading advertising and charging a higher price than the lowest price posted for an item. It requires the implementation of a price accuracy program that includes more testing and training and prevents price increases on weekends. The ruling complies with California’s price accuracy requirements.

The judgment requires Home Depot to pay a civil penalty of $1,700,000 and costs and damages of $277,251 to cover the costs of the investigation and to assist in the future enforcement of consumer protection laws.

The company has not admitted any wrongdoing. However, it has cooperated with the investigation and taken steps to correct the violations.

The lawsuit was filed in San Diego Superior Court by the Consumer Protection Unit of the San Diego District Attorney’s Office, along with the Consumer Protection Division of LADA and the district attorneys of Alameda, Orange, San Bernardino and Sonoma counties.
Source: Los Angeles County District Attorney