Walmart, the largest retailer in the United States, will pay $5.6 million to settle a lawsuit accusing the retail giant of overcharging customers for produce, baked goods and other products that were lighter than displayed on the label. The lawsuit also accuses Walmart of charging consumers more than the advertised or posted price on some items.
Impacted stores
The civil complaint was filed by the County of Santa Clara along with three other counties, which cited a violation of California’s False Advertising and Unfair Competition Laws by the retailer. Walmart has 280 stores in California, 10 of which are in Santa Clara, according to a press release from Deputy District Attorney Tamalca Harris on Friday, Aug. 8.
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Not the first time
Santa Clara officials note that this isn’t the first time Walmart has faced legal trouble for similar reasons. In 2012, the retailer paid $2.1 million for overcharging shoppers, which violated a 2008 judgment against it.
The 2008 judgment required Walmart to fix problems with pricing at the checkout counter. That ruling found that customers were overcharged upon checkout and “should have received $3 off the lowest advertised price of the item,“ according to a statement from then-California Attorney General Kamala Harris. “If the price was less than $3, the item was to be given to the consumer for free,” she added.
In November 2010, California regulators investigated whether Walmart’s stores were in compliance with the order and found that in 11 counties, Walmart’s errors at the cash register continued.
As a result, the “$3 off program” set to end in November 2012 was extended to November 2013. The retailer was also mandated to clearly display signs that explain its policy in English and Spanish at each of its checkout stands across its then-180 stores in the state.
Walmart was required to pay penalties and costs of $2.1 million as a consequence, and agreed to hire a person at each location across the state to maintain price accuracy. Any price discrepancy was to be submitted to the company’s headquarters within three hours of discovery as part of the settlement as well.
Where the money will go
Walmart will reportedly pay out the settlement to the Santa Clara County, San Diego County, San Bernardino County and Sonoma County district offices.
Under the settlement, Walmart must pay $5.5 million in penalties and is required to ensure the “price and weight accuracy” across stores in California. The retailer must also pay nearly $140,000 to compensate state officials who carried out weight and measurement investigations. Santa Clara County alone will receive nearly $1.4 million, which will go to the county’s “DA Consumer Protection Fund.”
Reaction
“When someone brings an item to the register to be scanned, the price must be right,” District Attorney Jeff Rosen said in a statement. “They expect it. California expects it – and we will apply the law to make sure of it.”
A Walmart spokesperson told San Jose’s KTVU that the company is glad to have the issue resolved. As part of the settlement, Walmart was not required to admit any wrongdoing or liability in the case, according to the district attorney’s office.
