Home Depot Settles Civil Complaint for False Advertising and Unfair Competition
September 12, 2024 – SAN DIEGO, CA- Los Angeles County District Attorney George Gascón announced today that Home Depot will pay $1,977,251 to settle a civil law enforcement complaint alleging the company engaged in false advertising and unfair competition.
District Attorney Gascón emphasized the seriousness of false advertising and unfair competition, stating that these offenses undermine consumer trust and distort the marketplace. He further explained that 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 serves as a clear message that such behavior will not be tolerated and highlights the commitment to safeguarding consumer rights in the community.
The civil complaint against Home Depot alleged that the company charged customers prices higher than its lowest advertised or posted price. This practice is commonly referred to as a “scanner violation,” where the price on an item or its shelf tag differs from what is scanned at the point-of-sale device or register.
As part of a judgment negotiated with Home Depot, entered on August 26 in San Diego County Superior Court by Judge Richard S. Whitney, several measures were put in place to address these issues. The judgment prohibits Home Depot from engaging in false or misleading advertising and charging more than their lowest posted price for an item. Additionally, it requires the implementation of a price accuracy program which includes increased audits and training while eliminating price increases on weekends. These measures align with California’s pricing accuracy requirements.
Under this judgment, Home Depot is obligated to pay $1,700,000 in civil penalties along with $277,251 for costs and restitution covering investigation expenses as well as future enforcement of consumer protection laws.
It’s important to note that while Home Depot did not admit any wrongdoing during this process; they cooperated fully with investigators and have taken corrective actions to address these violations.
The action was filed by San Diego County District Attorney’s Consumer Protection Unit along with LADA’s Consumer Protection Division alongside District Attorneys from Alameda, Orange, San Bernardino,and Sonoma counties.
