Home Depot To Pay Nearly $2M After Probe Into Overcharging Customers

Home Depot will pay $1,977,251 to settle a civil lawsuit alleging the company engaged in false advertising and deceptive practices.

California officials said Home Depot charged customers prices higher than their lowest advertised or posted price.

Often called a "scanner violation," it occurred when the price on the item or on the shelf tag was not the same on the UPC code scanned at the register.

Under a judgment negotiated with the company, Home Depot was prohibited from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. It requires the implementation of a price accuracy program, which adds more audits and training, and eliminates price increases on weekend days. The judgment adheres to California's pricing accuracy requirements.

The judgment requires Home Depot to pay $1,700,000 in civil penalties and $277,251 in costs and restitution to cover investigation costs and support future enforcement of consumer protection laws.

The company did not admit wrongdoing. Officials say it was cooperative in the investigation and has taken steps to correct the violations.

The Home Depot settlement isn't an isolated case in the world of retail. Other major chains have faced similar accusations of overcharging. In October 2022, Walmart was hit with a lawsuit alleging that the company "falsely inflated" the weight of specific items sold by weight, causing customers to pay more than they should. Although Walmart denied the claims, the case ended in a multi-million dollar settlement.

These incidents highlight a widespread issue in the retail industry, where errors in pricing and product weights can result in consumers paying more than they intended.

How to Avoid Being Overcharged

Experts recommend a few simple precautions to protect yourself from overcharging. First and foremost, always double-check that the price on an item's shelf label or sign matches what you are charged at the register. If there is a discrepancy, alert a manager or sales assistant immediately.

Most stores have scales in the relevant departments for items sold by weight, such as produce. Use them to weigh your items before heading to the checkout. When using a self-checkout, ensure the register's scale is zero before your item is weighed. If you notice any inaccuracies, raise the issue with store staff immediately.

IBT UK's Callum Conway-Shaw contributed to this report.