How was your weekend? Better than Home Depot’s probably. The company spent Saturday writing a check for $1.7 million to Los Angeles County, CAlif., to settle a complaint claiming the company engaged in false advertising and not playing fair when it comes to competition.
“False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace,” Los Angeles District Attorney George Gascón said.
“When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently. This settlement is a clear message that such behavior will not be tolerated and underscores our commitment to safeguarding the rights of consumers in our community.”
What got Home Depot on Gascón’s bad side was that it supposedly charged customers prices higher than Home Depot’s lowest advertised or posted price. These violations are typically referred to as “scanner violations,” and the problem occurs when the price a consumer would see either on the item itself or the item’s shelf tag, is not the same once the customer goes to check out and the UPC code gets scanned.
Take pictures of the price tag
In his ConsumerAffairs review of Home Depot, Rick of Moscow, Ohio, wrote that he had a similar problem at one of its stores, claiming that deck lumber that was listed at $13.68 rang up at $20.00 plus when he went to check out. “Bottom line, if you use Home Depot, take pictures of the prices on the shelf,” he said.
Under a judgment negotiated with the company, Home Depot is prohibited from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. Plus, it’s required now to implement a price accuracy program, which adds more audits and training, and eliminates price increases on weekend days.
Gascón said the company did not admit wrongdoing, but it was cooperative in the investigation and has taken steps to correct the violations.