Sonoma County Government: Target Resolves Allegations Of Price Overcharges And False Advertising

Press release from the Sonoma County Government:

March 10, 2022

Santa Rosa, CA  –  March 10, 2022  –  Sonoma County District Attorney Jill Ravitch announced today that Target Corporation has entered into a stipulated judgment and will pay $5,372,681 to settle a civil law enforcement complaint that alleged Target engaged in false advertising and unfair competition. The action was filed in Sonoma County Superior Court by Ravitch’s Environmental and Consumer Law Division along with the District Attorneys of Alameda, Marin, Contra Costa, Santa Cruz, Ventura, and San Diego.

The civil complaint filed by prosecutors alleged that Target unlawfully charged customers prices higher than Target’s lowest advertised price for items. The Complaint also alleged that prices advertised on the Target mobile application (or app) changed for some items when customers entered the perimeter of a Target store, and that the app advertised the price of certain items that were concurrently available for purchase in store at a different price without clearly disclosing (online or in store) where the item could be purchased for the advertised price.

District Attorney Ravitch stated, "We are committed to prosecuting pricing accuracy violations and ensuring that businesses charge customers accurately and in compliance with California law.  Consumers should always watch as items are scanned at the register and check receipts to verify that they are charged the lowest advertised or posted price for items.”

The Judgment includes an injunction that prohibits Target from engaging in false or misleading advertising, or charging an amount greater than the lowest price posted for an item. The Judgment further prohibits Target from using app-related technology in a way that causes the price of an item to increase based on the user’s location, and requires it to clearly state where a customer can obtain the item at the advertised price. Finally, Target will be required to implement audit and price accuracy procedures in its California stores for a seven-year period to ensure compliance with pricing accuracy requirements. 

Target will be required to pay $5 million in civil penalties, $200,000 in “cy pres” restitution to support future enforcement of consumer protection laws, and $173,618.81 total in costs to the several county Departments of Agriculture in California who conducted the investigation. Target cooperated during the investigation, and has since instituted new policies and procedures to improve pricing accuracy.

The Sonoma County Department of Agriculture / Weights and Measures Division inspected Target stores throughout the investigation. This agency is instrumental in monitoring retailers to make sure that consumers are being charged the lowest advertised price for items. The Department takes complaints from members of the public who believe they have been overcharged by businesses at (707) 565-2371. 

Chief Deputy Attorney Matthew Cheever prosecuted the case on behalf of the Sonoma County District Attorney's Office.

This press release was produced by the Sonoma County Government. The views expressed here are the author’s own.