Home Depot to Pay Nearly $2 Million to Resolve Civil Complaint Alleging Overcharging and False Advertising
September 12, 2024
OAKLAND, CA — Today, Alameda County District Attorney Pamela Price announced that Home Depot U.S.A. Inc. entered into a stipulated judgment to pay $1,977,251 to settle a civil law enforcement complaint that alleged false advertising and unfair competition arising from overcharging customers.
The civil action and stipulated judgment were filed in San Diego Superior Court. The Alameda County DA’s Office’s Consumer Justice Bureau joined the suit with the District Attorneys of Los Angeles, Orange, San Bernardino, San Diego, and Sonoma counties.
The civil complaint filed by prosecutors alleged that Home Depot routinely charged customers prices higher than its lowest advertised or posted price. This problem, often called a “scanner violation,” occurs when the price on the item itself or on the shelf tag is not the same price charged when the UPC code is scanned at the register.
“We take allegations of false advertising and overcharging customers very seriously,” said DA Pamela Price. “My office is pleased to have joined with district attorney’s offices across the state in this civil action, resulting in this significant settlement against Home Depot U.S.A. Inc. I commend our office’s Consumer Justice Bureau and their role as part of the joint litigation team that successfully achieved this settlement on behalf of Alameda County consumers.”
The stipulated judgment includes an injunction prohibiting Home Depot from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. The injunction requires Home Depot to implement and maintain a Price Accuracy Program, which includes additional price and employee training and prohibits price increases on weekends (when employees responsible for changing shelf price tags are usually not working). The new price accuracy procedures will assist Home Depot with compliance with California’s pricing accuracy requirements. The injunction requirements will remain in effect for three years.
The stipulated judgment also requires Home Depot to pay $1,700,000 in civil penalties, $177,251 in costs to cover investigation costs, and $100,000 to support future consumer protection law enforcement. Home Depot cooperated throughout the investigation, originally initiated by the various counties’ respective departments of Weights and Measures, but does not admit any wrongdoing in the judgment. The Alameda County Department of Agriculture / Weights & Measures inspected Home Depot stores in Alameda County and is instrumental in monitoring the retailer to ensure that consumers are being charged the correct price.
Alameda County will receive $283,333.33 of the civil penalties and $14,240.94 to reimburse the Alameda County Department of Agriculture / Weights & Measures for its investigative costs.
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Contact: damedia@acgov.org
The Alameda County District Attorney’s Office (DAO) is one of California’s largest prosecutors’ offices and is led by Alameda County’s first Black woman District Attorney Pamela Y. Price. Price brings her vision to this office to fairly administer justice in the pursuit of thriving, healthy, and safe communities for every person who steps foot in Alameda County, no matter their race, gender, religion, sexual orientation, income, or zip code. Price has been recognized as one of the most progressive prosecutors through her forward-thinking, innovative strategies to interrupt cycles of violence and crime and bring change to a criminal justice system rooted in systemic racism. Follow Madam DA on Instagram, Twitter, and Facebook, and @AlamedaCountyda on Twitter, Instagram, and Facebook.