Walmart faces lawsuit over ‘deceptive and unfair pricing practices’

BENTONVILLE, Ark. (KNWA/KFTA) — Walmart is facing a class action lawsuit over “deceptive and unfair pricing practices” on grocery products after a federal appeals court overturned a lower court’s decision on June 3, according to court documents.

Plaintiff Yoram Kahn claims the retail giant took advantage of consumers with its price discrepancies and says that while the discrepancies are small, they “add up 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.

Kahn claims to have shopped at a Walmart in Niles, Illinois, on August 2, 2022. Based on the prices listed 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, according to the lawsuit.

“In total, Kahn overpaid Walmart $1.89 on those six items, or nearly 7 percent of his pretax bill,” they said. “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.”

The 7th U.S. Circuit Court of Appeals in Chicago recently overturned a 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.

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

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.

KNWA/FOX24 has reached out to Walmart for comment on the lawsuit and is awaiting a response.