Home Depot to Pay $2 Million Settlement for Overcharging Customers in California
Home Depot has agreed to pay nearly $2 million to settle a civil enforcement case brought by California district attorneys, accusing the home improvement giant of false advertising and unfair competition. The case involved instances where customers were charged more at checkout than the prices displayed on shelf tags or the items themselves, a violation known as a “scanner violation.”
The complaint, filed in San Diego Superior Court, resulted in Home Depot paying $1.7 million in civil penalties and an additional $277,251 to cover investigation costs and support future consumer protection efforts. Although Home Depot admitted no wrongdoing, the company has been ordered to implement a price accuracy program to prevent future violations.
“False advertising and unfair competition are serious offences that undermine consumer trust and distort the marketplace,” said Los Angeles County District Attorney George Gascón in a statement.
While Home Depot has not yet responded to requests for comment, the Los Angeles DA’s office confirmed that the company was cooperative throughout the investigation. The settlement comes as Home Depot continues its expansion, recently announcing a $18.3 billion deal to acquire SRS Distribution, a major supplier for professional contractors.
Despite the penalties, the settlement is a small financial hit for the nation’s fifth-largest retailer, which remains a dominant player in the home improvement market.
