Home Depot to pay $2 million for overcharging customers

Home Depot has agreed to pay $2 million to settle a lawsuit that it overcharged customers.

The DIY giant has been accused of false advertising and unfair competition in a lawsuit filed by California district attorneys.

The case alleged that Home Depot customers were being charged more at checkout than what the item was advertised for on the shelf or on the item’s label, in what are called “scanner violations.”

Home Depot has now chosen to settle the case, admitting no wrongdoing but paying $1.7 million in civil penalties.

The settlement also cost the company $277,251 in investigative costs and funds earmarked for “future enforcement of consumer protection laws.”

However, no compensation will be paid directly to affected consumers.

The judgment also states that the company must implement a “pricing accuracy program” to avoid future discrepancies.

This will include more price audits, staff training and a ban on weekend price increases.

“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.

“When companies engage in deceptive practices, not only are they misleading consumers, they are also gaining an unfair advantage over companies that operate ethically and transparently.”

It comes just weeks after Home Depot sparked fears of setbacks after posting weaker second-quarter profits and issuing an ominous warning about the economy last month.

Chief Financial Officer Richard McPhail told analysts that consumers were spending less on major real estate projects because of a “sense of increased uncertainty in the economy.”

Homeowners are feeling the effects of higher mortgage rates and years of inflation that have taken a toll on their budgets, McPhail said.

Walmart was also recently caught overcharging customers and was forced to pay $45 million to settle a class-action lawsuit.

The lawsuit accuses the grocery giant of charging shoppers more than they should have paid for certain bags of citrus or packages of meat.

First, it is said that the weight of meat and seafood was inflated during checkout.

Second, the sellers are accused of mislabeling the weight of the bags and nets of citrus fruits. According to the complaint, the weight of the fruit was less than that indicated on the label.

Third, the retailer is accused of charging too high prices when these items were put on clearance sale, for example when they were almost expired.

Customers who purchased the items between October 19, 2018 and January 19 of this year can claim up to $500 by completing an online form.