Home Depot Agrees to $2 Million Settlement in ‘Scanner Violation' Complaint

Core Points - Home Depot will pay nearly $2 million to settle a civil law enforcement complaint regarding overcharging and false advertising [1] - The settlement includes a prohibition on false or misleading advertising and requires the implementation of a price accuracy program [2] - The settlement follows a previous lawsuit where Home Depot paid $750,000 for violating a state law on gift card cash redemption [2] Group 1: Settlement Details - The total settlement amount is $1,977,251, which includes $1,700,000 in civil penalties and $277,251 in costs and restitution [2] - Home Depot has committed to updating the timing of its price changes to ensure consistency for customers [2] - The company did not admit wrongdoing but has taken steps to correct the violation [1][2] Group 2: Industry Context - The Los Angeles County District Attorney emphasized that false advertising and unfair competition undermine consumer trust and distort the marketplace [2] - Walmart experienced a similar issue with mispricing due to an internal system failure, affecting 1,600 stores [3] - Over 80% of customers who were overcharged at Walmart were reimbursed following the resolution of the technical issue [3]