Home Depot To Pay $2M For Overcharging Customers: DA

LOS ANGELES, CA — Home Depot will pay $1,977,251 to settle a civil complaint alleging the company engaged in false advertising and unfair competition by overcharging customers.

The complaint against the home improvement chain claimed Home Depot charged customers higher prices than they advertised or posted. Often referred to as a "scanner violation," the problem occurs when the price of the item doesn't match the price when the UPC code is scanned at the register.

“False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace,” District Attorney Gascón said. “When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently. This settlement is a clear message that such behavior will not be tolerated and underscores our commitment to safeguarding the rights of consumers in our community.”

The judgment was negotiated with the company on Aug. 26 in San Diego County Superior Court and signed by Judge Richard S. Whitney. It required the implementation of a price accuracy program, which adds more audits and training and prohibits price increases on weekend days.

Home Depot is required to pay $1.7 million in civil penalties and $277,251 in costs and restitution to cover investigation costs and support future enforcement of consumer protection laws.

According to Gascon, Home Depot did not admit wrongdoing and was cooperative in the investigation. Measures have been taken to correct the violations, Gascon said.