Walmart will pay $5.6 million to settle a California consumer protection lawsuit alleging the retailer overcharged customers and sold products that weighed less than stated on their labels. The case involved items such as produce, baked goods, and other prepared foods.
The case was brought by the district attorneys of Santa Clara, San Diego, San Bernardino, and Sonoma counties, who alleged Walmart’s conduct violated California’s False Advertising Law and Unfair Competition Law. Walmart operates 280 stores in California.
Under the settlement, Walmart will pay $5.5 million in civil penalties and $139,908.92 to cover investigation costs incurred by the Santa Clara County Weights and Measures Division. Santa Clara County will receive $1,375,000 for its Consumer Protection fund. The company is also required to employ staff responsible for verifying pricing and weight accuracy in all of its California stores.
“When someone brings an item to the register to be scanned, the price must be right,” Santa Clara County District Attorney Jeff Rosen said in a statement. “They expect it. California expects it. My Office expects it – and we will apply the law to make sure of it.”
Inspectors from the Santa Clara County Weights and Measures Division conducted in-store price checks and product weight testing as part of the investigation. These inspections identified repeated discrepancies between posted prices and scanned prices, as well as packaged goods that weighed less than the labels indicated. The findings were reviewed alongside evidence from the Division of Agriculture and the Department of Environmental Health before the lawsuit was filed.
California’s False Advertising Law prohibits companies from making untrue or misleading statements in connection with the sale of goods or services, while the Unfair Competition Law bars unlawful, unfair, or fraudulent business acts. Both laws carry significant civil penalties and allow courts to order corrective actions to prevent future violations.
This is not the first time Walmart has faced similar allegations. In 2012, the retailer paid $2.1 million for overcharging customers in violation of a 2008 judgment.
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