Home Depot is in a bit of a pickle after it was accused of false advertising and unfair competition in a California civil lawsuit after allegedly overcharging customers. As a result, the home improvement retail chain, which has denied any wrongdoing, was ordered to pay more than $2 million to settle the claim.
The complaint filed by the Los Angeles County District Attorney's Office alleged that Home Depot charged customers higher prices than the lowest price it advertised or published. This practice, commonly known as “scanner breaching,” occurs when a product's shelf label or UPC code does not match the price when scanned at a point-of-sale device or checkout.
“False advertising and unfair competition are serious crimes that undermine consumer confidence and distort the marketplace,” Los Angeles County District Attorney George Gascón said in a statement.
“When companies engage in deceptive practices, they not only deceive consumers, they also gain an unfair advantage over businesses that operate ethically and transparently,” Gascón continued. “This settlement sends a clear message that this type of behavior will not be tolerated and underscores our commitment to protecting the rights of consumers in our society.”
As part of the August 26 ruling, Home Depot was prohibited from “engaging in false or misleading advertising and charging a higher price than the lowest published price for a product.” The chain must also implement a price accuracy program that includes increased oversight and training, and eliminate price increases on weekend days. The company was also ordered to pay a civil penalty of $1.7 million and $277,251 in costs and restitution.
In a statement Fox BusinessHome Depot said it updated the timing of price changes to “ensure consistency” for customers.
