The home improvement company Home Depot has agreed to pay nearly $2 million to settle a civil enforcement claim from California district attorneys regarding false advertising and unfair competition. The complaint filed in San Diego Superior Court alleged that customers at Home Depot were being charged more money at checkout than what was listed on the shelf tag or item itself, a practice known as “scanner violations.” While Home Depot did not admit any wrongdoing, they will pay $1.7 million in civil penalties and $277,251 for investigation costs and future enforcement of consumer protection laws.
As part of the settlement, Home Depot is required to implement a price accuracy program to prevent future violations. Los Angeles County District Attorney George Gascón emphasized the importance of maintaining consumer trust and a fair marketplace, stating that false advertising and unfair competition are serious offenses. Home Depot has not yet responded to CNN’s request for comment, but the Los Angeles DA’s office noted that the company was cooperative during the investigation.
Despite the $2 million settlement, the civil penalties are negligible for Home Depot, the nation’s fifth-largest retailer. In a separate business move, Home Depot recently announced plans to acquire SRS Distribution, a major supplier for building projects, for $18.3 billion. This acquisition highlights the company’s continued growth and expansion within the home improvement industry. CNN reporter Nathaniel Meyersohn contributed to this report, shedding light on the legal proceedings and financial implications for Home Depot.
Overall, the settlement between Home Depot and California district attorneys serves as a reminder of the importance of price accuracy and transparent business practices. The scanner violations at Home Depot were seen as a breach of consumer trust and marketplace integrity, leading to the enforcement action and financial penalties. The implementation of a price accuracy program aims to prevent similar violations in the future and ensure that customers are charged the correct prices for items purchased. Despite the relatively small financial impact on Home Depot, the settlement underscores the consequences of false advertising and unfair competition in the retail industry.
