Home Depot to pay $2 million for overcharging customers

NEW YORK — Home Depot will pay nearly $2 million to settle a civil lawsuit filed by California district attorneys alleging that the home improvement company engaged in false advertising and unfair competition.

The complaint filed in San Diego Superior Court says that when Home Depot customers bring an item to the checkout line, they are charged more than what is listed on the shelf label or on the item itself. Such violations are called “scanner violations,” the Los Angeles County District Attorney’s Office said in a news release Thursday.

Although the company has not admitted any wrongdoing, it must pay $1.7 million in civil penalties, as well as $277,251 to cover investigation costs and to “support future enforcement of consumer protection laws.”

The judgment held that Home Depot must implement a price accuracy program.

“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.

Home Depot did not respond to CNN’s request for comment. The Los Angeles District Attorney’s Office said the company has cooperated with the investigation.

The civil penalties are just a drop in the bucket for the nation’s fifth-largest retailer. In March, Home Depot announced it was buying SRS Distribution — a massive home improvement supplier whose main customers include professional roofers, landscapers and pool installers — for $18.3 billion.

CNN’s Nathaniel Meyersohn contributed to this report