California regulators uncovered widespread scanner violations at Home Depot stores, where checkout prices routinely exceeded shelf tags, leading to a landmark $1.98 million settlement that exposed systemic pricing flaws affecting thousands of shoppers.
Regulators described the discrepancies as systemic, spanning multiple counties and everyday items like lumber, paint, and tools. Consumer complaints prompted unannounced audits by Weights and Measures departments, revealing patterns of overcharges that violated state Price Accuracy and False Advertising laws. These rules mandate exact matches between displayed and register prices, with repeat issues escalating to civil penalties.
The Laws Behind the Case
California’s strict statutes require shelf prices to align precisely with checkout totals. County officials perform random scans, photographing tags as evidence. Isolated errors draw warnings, but persistent mismatches trigger lawsuits, designed to curb undetectable overcharges on routine purchases.
Coordinated inspections in San Bernardino, Sonoma, and Orange counties logged recurring discrepancies across stores. Investigators compared scanned items against tags, finding the same issues in multiple locations. This multi-county effort allowed prosecutors to demonstrate breakdowns in pricing systems, rather than mere tagging or cashier errors.
A Stunning Audit Result
Orange County audits produced stark evidence: 64% of checked items rang up higher than posted prices—a rate far exceeding the industry’s typical under-2% compliance target. Such findings elevated the probe from standard enforcement to major litigation, underscoring routine overcharges for customers.
On August 26, 2024, San Diego Superior Court Judge Richard S. Whitney approved a $1,977,251 settlement resolving scanner overcharge and false advertising claims. It allocated $1.7 million to civil penalties, with $277,251 for investigation costs and restitution—one of California’s largest pricing-accuracy cases.
Six Counties Unite
District attorneys from Los Angeles, San Diego, Orange, Alameda, San Bernardino, and Sonoma counties filed jointly, led by Los Angeles DA George Gascón. They cited consistent patterns where registers exceeded shelf prices, highlighting the violations’ broad reach and consumer impact.
Overcharges hit common goods—paint cans, fixtures, tools—often by small amounts that accumulated across millions of transactions. Gascón noted such practices undermine trust and distort markets, with regulators stressing how discrepancies erode fairness in daily shopping.
Not Just One Retailer
The case aligns with prior multimillion-dollar settlements against Target and Albertsons-Safeway for similar issues. Authorities now prioritize scanner accuracy, rejecting excuses like outdated systems or delayed updates as tolerable.
A key remedy prohibits weekend price hikes at California Home Depot stores, targeting peak times when families and contractors shop most. This court-ordered measure locks in transparency during high-traffic periods to prevent opportunistic shifts.
Home Depot’s Response and Compliance Overhaul
Home Depot neither admitted nor denied wrongdoing, a common settlement feature, while cooperating on fixes. The judgment mandates a Price Accuracy Program: dedicated staff, regular internal audits, employee training, and no weekend increases. Court oversight ensures implementation, with $277,251 funding enforcement.
Unannounced audits persist, including peak seasons. San Bernardino Commissioner Brady Gergovich observed that violations often signal retailer-wide issues, not isolated errors, and most businesses respond to guidance. Consumers can report suspicions via county hotlines or forms.
Broader Implications
This multi-county action signals pricing laws’ enforcement strength, potentially expanding to other retail areas. Nationally, it pressures chains to upgrade systems, with similar probes emerging elsewhere. The model—training, audits, restrictions, and restitution—balances protection with operations, fostering long-term accuracy and consumer confidence at registers.
Sources:
California Agricultural Commissioners and Sealers Association (CACASA): County Sealers of Weights and Measures Play Key Role in Home Depot Settlement (September 29, 2024)
San Bernardino County District Attorney’s Office: Home Depot Settles Lawsuit Alleging Overcharging and False Advertising (September 17, 2024)
Sonoma County District Attorney’s Office: Home Depot Settles Violations Related to California Price Accuracy Law for $1,977,251 (September 16, 2024)
Los Angeles County District Attorney’s Office: Home Depot Settles Lawsuit Alleging Overcharging and False Advertising (September 12, 2024)