Companies and Brands

Home Depot Fined Almost $2 Million for Charging Customers Too Much

Douglas A. McIntyre

Published: September 15, 2024 9:19 am

Last Updated: September 16, 2024 7:34 am

24/7 Wall St. Insights

• Home Depot Inc. (NYSE HD) was fined for overcharging customers in Los Angeles County.
• The national press picked up the story, which means the company’s reputation was damaged.
• Also: Dividend legends to hold forever.

Home Depot Inc. (NYSE HD) was fined for overcharging customers, and the Los Angeles County District Attorney brought a case against the huge home improvement company.

The charges were recently resolved. According to the District Attorney’s Office, Home Depot paid $1,977,251 for false advertising. Specifically, “False advertising and unfair competition are serious offenses that undermine consumer trust and distort the marketplace. When companies engage in deceptive practices, they not only cheat consumers but also gain an unjust advantage over businesses that operate ethically and transparently.”

Home Depot charged customers a higher price than the lowest one in promotions to the public. The amount people paid when an item was scanned differed from the amount they paid at checkout. This is known as a “scanner violation.”

The retailer’s revenue was over $150 billion last year, so the financial part of the settlement is meaningless. However, the national press picked up the story, which means Home Depot’s reputation was damaged.

∴