Home Depot ordered to pay nearly $2 million for false advertising and unfair competition

(The Hill) — Home improvement company Home Depot has agreed to pay nearly $2 million to settle a civil complaint filed by multiple California district attorneys alleging that the company engaged in false advertising and unfair competition.

The company must pay $1.7 million in civil penalties, plus $277,251 to cover investigation costs and “support future enforcement of consumer protection laws.” Home Depot has not admitted wrongdoing but has cooperated with the investigation, according to a press release from the Los Angeles County District Attorney’s Office.

“False advertising and unfair competition are serious crimes that undermine consumer confidence and distort the marketplace,” Los Angeles County District Attorney Gascón said in a statement.

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The lawsuit alleges that Home Depot customers brought items to the checkout counter and the price of the item was higher than what was listed on the shelf, a practice the DA’s office calls “scanner violations.”

“When companies engage in deceptive practices, they not only deceive consumers, they also gain an unfair advantage over companies that operate ethically and transparently,” Gascón said. “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 home improvement retailer must implement a price accuracy program that will “add more audits and training and eliminate weekend price increases.” In early July, the company agreed to pay $750,000 to settle a lawsuit alleging it failed to comply with California state law regarding gift cards.

The Hill has reached out to Home Depot for comment.

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