Home Depot Class Action: Were Online "Sales" Deceptive?

Case Overview: A class action lawsuit has been filed against Home Depot, alleging that the company misleads consumers with false advertising and deceptive pricing practices, particularly regarding its "free shipping" and "sale" promotions.

Consumers Affected: Individuals who purchased products from Home Depot's website.

Court: U.S. District Court for the Eastern District of California

Home Depot is under fire from consumers claiming its online store promotes misleading discounts. According to a new consumer lawsuit, Home Depot inflates its “original” prices on items to make discounts look more attractive. 

The customers behind the lawsuit argue the practices deceive customers into buying products they believe are on sale when, in fact, the discounts are based on prices that were rarely, if ever, charged in the past.

Home Depot Accused of False Advertising With Deceptive Sales Tactics

Lacey Timmins filed the proposed class action lawsuit against the retail giant, claiming violations of various California laws as well as breach of warranty and unjust enrichment. 

She said that in February she bought a GE dishwasher from Home Depot’s website after seeing it advertised with a 36 percent discount off an original price of $949, bringing the “sale” price to $598. The listing said “Save 36%” and displayed a strikethrough on the regular price, leading her to believe she was getting a genuine bargain, she argues in the lawsuit. 

However, archived versions of the website show the original price had been displayed at a discount for some time. Timmins claims she was misled by Home Depot’s claims of a “limited-time sale” and exaggerated discounts and wouldn’t have paid as much if she had known the true pricing history.

Lawsuit Claims Home Depot Used "Reference Pricing" to Mislead Consumers

Home Depot’s pricing model, according to the lawsuit, relies on what’s known as a “reference pricing scheme,” where products are listed with a crossed-out “original price” beside a “discounted” price. The lawsuit argues that this setup falsely implies the original price was previously charged on the website, making it appear that the customer is receiving a limited-time offer. 

Research suggests that such tactics, known as “strikethrough” pricing, often lead consumers to perceive a high-value discount, even if the item was rarely sold at the “original” price. The lawsuit argues this was a strategic move to enhance customers’ perception of value, leading them to make purchases they might otherwise reconsider.

By failing to disclose that the “original” price was rarely used, Home Depot allegedly pressured consumers to make purchases based on the illusion of a deal, further boosted by limited-time messages on its website. Timmins said she is unlikely to trust Home Depot’s online pricing in the future because of the tactic.

Companies Face Growing Backlash Over Fake Sales and Misleading Pricing

Home Depot isn’t alone in facing accusations of fake reference pricing, with consumers laying allegations on a number of companies they say inflate regular prices on products to create the illusion of a discount. Currently, Sleep Number is facing a class action lawsuit over allegedly misleading “sale” prices on mattresses. 

Also, Albertsons has been accused of falsely advertising discounts on wine, while Amazon has faced similar claims regarding its “list prices” on electronics. Fashion retailers such as Ann Taylor and Loft have also encountered lawsuits alleging that fake original prices were used to make discounts look more substantial than they were.

Meanwhile,  a class action lawsuit has been filed against Williams-Sonoma, alleging that the company's "Free Shipping Sitewide" promotion was misleading and that consumers were charged shipping fees for items that were not eligible for free shipping.

In her lawsuit against Home Depot, Timmins wants to represent California consumers in her claims of violations of the state’s Consumers Legal Remedies Act, False Advertising Law, Unfair Competition Law, as well as fraud and unjust enrichment. She is seeking enjoinment, damages, restitution, injunctive relief, and attorneys’ costs and fees. 

Case Details

• Lawsuit: Timmins v. The Home Depot U.S.A.
• Case Number: 1:24-cv-04797-VMC
• Court: U.S. District Court for the Eastern District of California 

Plaintiffs' Attorneys

• Alexander E. Wolf (Milberg Coleman Bryson Phillips Grossman, PLLC)

Have you purchased products from Home Depot's website and felt misled by their sales or discounts? Share your experiences and thoughts in the comments below.