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Why Is Home Depot Paying Out $2 Million?

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Home Deport has agreed to pay out almost $2 million to settle a civil complaint in California. September 16, 2024.

(Sacramento, CA) – After Home Depot was accused of deceptive business practices, the retail giant has agreed to pay out nearly $2 million as part of a lawsuit filed in California.

Originally filed in San Diego, the civil action argued that Home Depot engaged in false advertising and unfair competition. The claim is that Home Depot listed one price for items on the shelf, then charged a higher amount at checkout. This is known as “scanner violations” in the retail sector. As part of the settlement, Home Depot is not admitting wrongdoing — but must pay $1.7 million in civil penalties plus $277,251 to cover the costs of the investigation. In part, those costs will “support future enforcement of consumer protection laws.”

The Los Angeles County District Attorney Office says Home Depot was cooperative. District Attorney George Gascón released a statement that reads “false advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace.”

Home Depot is one of the world’s largest retailers — ranking fifth in the nation overall.

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