San Diego, CA – Home Depot has agreed to pay nearly $2 million to settle a lawsuit that alleged the company overcharged customers by charging more at checkout than the prices advertised on shelves. The settlement was filed in San Diego County Superior Court and approved on August 26 by Judge Richard S. Whitney.
The lawsuit, brought by district attorneys in six California counties, claimed that Home Depot engaged in “scanner violations”—when prices scanned at checkout differ from those listed on the item or its shelf tag. Prosecutors alleged these discrepancies led to higher prices for customers.
In response to the settlement, Home Depot stated, “To ensure consistency for our customers, we’ve updated the timing of our price changes.” While Home Depot did not admit any wrongdoing, the settlement mandates new measures to prevent future price discrepancies.
Los Angeles County District Attorney George Gascón, a lead plaintiff in the case, condemned the practices in a statement, asserting that companies engaging in deceptive pricing harm both consumers and ethical businesses.
The settlement includes $1.7 million to be divided among the district attorneys’ offices in Los Angeles, San Diego, Orange, Alameda, San Bernardino, and Sonoma counties for consumer protection enforcement. Additionally, $177,251.28 will be allocated to consumer regulators in those counties and Sacramento County. Two nonprofit organizations will receive $50,000 each to support further consumer protection initiatives.
Under the terms of the agreement, Home Depot must always use the lowest price displayed, appoint an executive-level price monitor, implement price accuracy checks in every California store, and make records available to prosecutors to ensure compliance.
Home Depot, headquartered in Atlanta, reported an operating profit of nearly $22 billion for the 2023 fiscal year.
For more information on this case, visit the Los Angeles County District Attorney’s Office or San Diego County District Attorney.
