Home Depot Settles Overcharging Lawsuit for $2 Million

Home Depot has agreed to pay nearly $2 million to settle a class action lawsuit that alleged the company overcharged customers by charging more for items at checkout than the advertised prices, NBC News reports.

The settlement, announced last week and approved by a California judge, resolves a case brought by prosecutors in six California counties. The lawsuit accused Home Depot of engaging in "scanner violations," where prices on items or shelf tags did not match the prices charged at checkout.

Los Angeles County District Attorney George Gascón, acting as a lead plaintiff for his office, stated last week that the price discrepancies appeared intentional.

"When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently," he stated.

Settlement Requires Home Depot to Implement Price Accuracy Measures

Under the terms of the settlement, Home Depot will pay $1.7 million to be divided among the district attorneys' offices of Los Angeles, San Diego, Orange, Alameda, San Bernardino, and Sonoma counties. Additionally, the company will pay $177,251.28 to consumer regulators in these counties, as well as in Sacramento County.

Furthermore, Home Depot will donate $50,000 each to an agricultural consumer watchdog nonprofit and a trust fund to prosecute those who rip off consumers.

As part of the settlement, Home Depot is also required to implement several measures to ensure price accuracy. These measures include:

• Always using the lowest prices posted.
• Hiring an executive-level, internal price watchdog.
• Assigning price accuracy checks to managers in every California store.
• Making records of price accuracy available to prosecutors.

"This settlement is a clear message that such behavior will not be tolerated and underscores our commitment to safeguarding the rights of consumers in our community," Gascón stated.

Home Depot has not admitted any wrongdoing in the settlement. 

Home Depot Faces Additional Legal Challenges Beyond Scanner Overcharging Claims

This is not the first time Home Depot has faced legal challenges. In February, the company was hit with a data privacy class action lawsuit alleging that it allowed Google's artificial intelligence (AI) program to listen in on customer service calls without informing the callers.

More recently, in July, Home Depot was sued for allegedly overcharging customers for tool rental late fees and damage protection coverage. The lawsuit claims that Home Depot systematically charges higher fees than stipulated in its rental contracts.

These cases are still pending in California federal court and Georgia federal court, respectively.

Have you experienced overcharging issues at Home Depot or other retailers? Share your thoughts and experiences in the comments below.