Home Depot has agreed to pay out nearly $2 million to settle a civil case brought up by California district attorneys that accused the home improvement giant of overcharging customers.
Apparently, Home Depot engaged in what is known as “scanner violation,” which happens when a retailer displays one price but charges a higher one at checkout.
Los Angeles County District Attorney George Gascon said in a statement that Home Depot “engaged in false advertising and unfair competition” by advertising lower prices and placing lower price tags on items only to charge customers more at the register.
“When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently,” Gascon stated.
While Home Depot didn’t admit any wrongdoing, it agreed to pay $1.7 million in civil penalties. It will also shell out an additional $277,251 to cover the costs of the investigation and contribute to the support of “future enforcement of consumer protection laws.”
The case might cause a blemish to Home Depot’s reputation, but it won’t cause any major financial harm considering the company reported revenue of $43.17 billion and net income of $4.56 billion in the second quarter of 2024.
Home Depot’s stock closed at $382.01 per share on Monday and is currently 10.70% up year-to-date.