Walmart faces class action lawsuit over 'deceptive and unfair pricing practices'

(KNWA/KFTA) — Walmart faces a class action lawsuit over allegations it engaged in “deceptive and unfair pricing practices” on grocery products, a federal appeals court ruled July 3.

The plaintiff, Yoram Kahn, claims the retail giant took advantage of consumers with small price differences that “amount to hundreds of millions of dollars each year.”

“Kahn alleges that Walmart is aware of these discrepancies between shelf and checkout prices and that its unfair and deceptive pricing practices are pervasive and continuous,” the complaint states.

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Kahn said he shopped at a Walmart in Niles, Illinois, on Aug. 2, 2022. Based on the prices on the shelves, he decided what to buy.

Once he went to pay, Kahn scanned 15 items and later learned that six of the 15 items scanned were marked up 10 to 15 percent above the shelf price, the lawsuit alleges.

“In total, Kahn overpaid Walmart $1.89 on these six items, or nearly 7 percent of his pretax total bill,” the complaint states. “That’s small money for Kahn as an individual, to be sure, but it’s important to keep in mind Walmart’s volume of business.”

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A Walmart spokesperson provided the following statement to Nexstar’s KNWA: “We will always strive to provide our customers with everyday low prices they can count on. We are confident in the evidence and look forward to making our case.”

That case was previously dismissed in March 2023 after a judge ruled that Walmart’s provision of a receipt after purchase negated the unfairness caused by inaccurate on-shelf pricing.

However, the 7th U.S. Circuit Court of Appeals in Chicago recently overturned the lower court judge’s decision and said customers could try to prove that Walmart used a “lure and switch” method that violates Illinois consumer protection laws.

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This is not the first time Walmart has faced legal issues over its pricing.

In June, Walmart agreed to pay $1.64 million to settle claims by New Jersey regulators for inconsistent unit pricing, according to a news release from New Jersey Attorney General Matthew J. Platkin.

The New Jersey Division of Consumer Affairs said in a consent decree that the department’s investigation showed that the state’s 64 stores violated unit pricing regulations by failing to use a standard unit of measurement — such as the quart, pound or per 100 sheets — on groceries and other items.

Earlier this year, Walmart announced plans to install digital shelf labels in nearly 2,300 stores by 2026. The new feature will allow employees to update prices via a mobile app and eliminate the need to change paper labels by hand, the company said.

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