Home Depot to pay $2 million to settle false advertising case

Home Depot has settled a civil case alleging false advertising and other deceptive business practices. The home goods store will pay nearly $2 million despite admitting no wrongdoing.

District attorneys in California initially filed the grievance in San Diego Superior Court. According to the Los Angeles County District Attorney’s Office, Home Depot allegedly cheated customers to pay the next price than the advertised price of the product. This was considered a “scanner violation”, the product label on the shelf won’t ring the identical on the checkout due to the costlier UPC code.

Case lawyer George Gascón called the settlement a “clear message” that these illegal practices by large corporations won’t be tolerated.

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

The company began negotiations with district attorneys on August 26. As a result, the ruling ordered Home Depot to pay $1.7 million plus an extra $277,251 in investigation costs and damages. The additional fee may also support enforcement of consumer protection laws.

In addition, Home Depot is prohibited from promoting false advertising and charging more for an item than is visible. The ruling also ordered it to implement a price accuracy program. It includes more audits and training, in addition to eliminating weekday price increases.

However, an act of contrition was not certainly one of the necessities, as Home Depot didn’t admit to committing against the law. LADA noted that the corporate, which Identifies as the world’s largest home improvement retailer, cooperated throughout the investigation.