Home Depot's $2 Million Settlement for False Advertising and Unfair Competition

Home improvement company Home Depot has agreed to pay nearly $2 million to settle a civil complaint from several California district attorneys, alleging that the company participated in false advertising and unfair competition.

The company must pay $1.7 million in civil penalties and $277,251 to cover investigation costs and support future enforcement of consumer protection laws. Although Home Depot did not admit wrongdoing, it was reported to have been cooperative during the investigation.

California District Attorney Gascón stated, “False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace.”

The lawsuit identified that customers experienced what are called “scanner violations,” where the price at the checkout was higher than that listed on the shelf.

Gascón emphasized that deceptive practices not only harm consumers but also provide unfair advantages to unethical businesses, saying this settlement sends a strong message that such behavior will not be tolerated.

As part of the settlement, Home Depot will implement a price accuracy program, enhancing audits and training while eliminating price increases on weekends.

Earlier in July, the retailer also agreed to a $750,000 settlement for allegations of failure to comply with California’s state law regarding gift cards.