Walmart settles a customer protection lawsuit for $5.6 million which accuses the retail giant of overcharging customers across its California stores.
Multiple California counties filed a lawsuit alleging that Walmart has charged customers more than the lowest advertised price.
Additionally, Walmart was also involved in mislabeling products, as some items such as baked goods and packaged foods weigh less than labeled.
As a result, Walmart was fined $5.5 million in civil penalties and $139,908 to cover investigation costs.
Jeff Rosen, Attorney of Santa Clara County District emphasized: “When someone brings an item to the register to be scanned, the price must be right. They expect it. California expects it. My office expects it, and we will apply the law to make sure of it.”
Back in 2012, Walmart paid $2.1 million for similar pricing violations.
Other retail stores, including Safeway and Kroger & Subsidiaries, also faced similar penalties. Safeway was charged with $4 million in October 2024 for overcharging at California stores. Kroger & Subsidiaries including Harris Teeter, Ralphs, and Fred Meyer were involved in sales of products with expired sales prices misleading shoppers.
A customer rights advocate, Edgar Dworsky, stated: “People should pay the price that is being advertised, that's the law.”
In California, Walmart operates 280 stores with over 5,200 locations worldwide. After settling the lawsuit, the retail giant must now ensure accurate pricing and labeling to comply with state laws.
