Home Depot is being ordered to pay nearly $2 million to settle claims from California district attorneys. They say the company overcharged customers for products.
Los Angeles County District Attorney George Gascón stated the retailer "engaged in false advertising and unfair competition." Home Depot allegedly charged higher prices than those advertised or posted.
This type of violation, called a "scanner violation," happens when the price scanned at checkout doesn’t match the one on the shelf tag. Gascón explained that this deceives customers at the register.
"When companies engage in deceptive practices, they cheat consumers and gain an unfair advantage over ethical businesses," Gascón said.
The Aug. 26 court order bans Home Depot from false or misleading advertising. They can’t charge more than the lowest price posted for an item.
Although the company admitted no wrongdoing, they must now implement a price accuracy program. This includes more audits, extra training, and stopping price increases on weekends.
Home Depot is also required to pay $1.7 million in penalties and over $277,000 in costs and restitution.
The company stated it has updated the timing of price changes to "ensure consistency" for customers.