Home Depot to Pay Nearly $2 Million

San Diego County District Attorney Summer Stephan announced today that Home Depot U.S.A. Inc., entered into a stipulated judgment and will pay $1,977,251 to settle a civil law enforcement complaint that alleged Home Depot engaged in false advertising and unfair competition.

The action was filed in San Diego Superior Court by the DA’s Consumer Protection Unit along with the District Attorneys of Alameda, Los Angeles, Orange, San Bernardino, and Sonoma counties.

The civil complaint filed by prosecutors alleged that Home Depot charged customers prices higher than Home Depot’s lowest advertised or posted price. The problem is often called a “scanner violation,” which is when the price on the item, or on the item’s shelf tag, is not the same once the UPC code is scanned at the point-of-sale device or register.

“Our Consumer Protection Unit is committed to ensuring businesses charge consumers their lowest advertised or posted price,” said DA Stephan. “In addition to county agencies monitoring companies’ actions, the public can also help ensure that scanner prices and shelf tag prices are the same by checking receipts and reporting overcharges.”

The judgment includes an injunction that prohibits Home Depot from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. The judgment requires Home Depot to implement a Price Accuracy Program which adds additional audits and training and eliminates price increases on weekend days.  The new price accuracy procedures will assist Home Depot with compliance with 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. Home Depot has not admitted any liability or wrongdoing but has cooperated with the weights and measures inspectors throughout the state and with the prosecutors.

The San Diego County Department of Agriculture, Weights and Measures, is the agency that inspected Home Depot throughout San Diego County and is instrumental in monitoring retailers to make sure that consumers are being charged the correct price. Consumers may report overcharges to Weights and Measures online by using the General Consumer Complaint Form or by calling 1-888-TRUE-SCAN (878-3722) (toll free) or e-mail wm.awm@sdcounty.ca.gov.

Deputy District Attorney Kathryn Turner was the prosecutor for the San Diego County District Attorney.