Home Depot agrees to fork over $2 million in compensation due to accusations of overcharging their clients.
A complaint lodged in San Diego Superior Court claimed that patrons of Home Depot were frequently overcharged at the checkout counter, with the amounts displayed on shelf tags or on the items themselves being lower than the actual charges. Such incidences are categorized as "scanner violations," as confirmed by the Los Angeles County District Attorney's office in a communique published on Thursday.
Despite denying any wrongdoing, Home Depot has been ordered to pay a sum of $1.7 million in civil fines and an additional $277,251 to cover the expenses of the investigation and to bolster future enforcement of consumer protection laws.
The ruling mandates Home Depot to execute a price accuracy program.
Los Angeles County District Attorney George Gascón voiced his concerns about false advertising and unfair competition in a statement, asserting that these practices corrode consumer trust and distort the marketplace.
Home Depot has yet to respond to CNN's request for comment. The Los Angeles District Attorney's office has indicated that the company was cooperative during the investigation.
The financial penalties imposed on Home Depot are relatively insignificant when considering its size. In March, Home Depot revealed its intention to acquire SRS Distribution — a major supplier for construction projects, catering primarily to professional roofers, landscapers, and pool contractors — for a staggering $18.3 billion.
This report was contributed by CNN's Nathaniel Meyersohn
Home Depot's business operations were under scrutiny due to allegations of overcharging customers, leading to a significant financial penalty. The company was ordered to implement a price accuracy program as part of the settlement.
