Home Depot Settles $2 Million Claim Over False Advertising and Price Misrepresentation

Saturday, 14 September 2024, 06:30

Home Depot has agreed to a $2 million settlement addressing claims of false advertising and overcharging customers. The settlement comes after allegations that customers were often charged more than the prices displayed on shelf tags. As part of the resolution, Home Depot will implement a price accuracy program to enhance consumer trust.
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Home Depot Settles $2 Million Claim Over False Advertising and Price Misrepresentation

Background of the Settlement

Home Depot will pay nearly $2 million to settle a civil enforcement claim from California district attorneys that accused the company of false advertising and unfair competition. The complaint filed in San Diego Superior Court indicated that customers encountered scanner violations, where they were charged more at checkout than what was shown on the shelf tags or the items themselves.

Details of Penalties

  • $1.7 million in civil penalties
  • $277,251 to cover investigation costs
  • Implementation of a price accuracy program

Los Angeles County District Attorney George Gascón emphasized the seriousness of such offenses, stating that they undermine consumer trust and distort the marketplace. Although Home Depot admitted no wrongdoing, the company showed cooperation in the investigation.

Ongoing Business Ventures

This settlement represents a minor financial setback for Home Depot, which is currently involved in an $18.3 billion acquisition of SRS Distribution, positioning itself strongly in the construction supplies sector.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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