Walmart Agrees to Pay $5.6M in Penalties for Overcharging for Prepared Foods in California

Walmart, the largest retailer in the United States, will pay $5.6 million to California customers to settle a consumer protection lawsuit alleging the retail giant overcharged customers and sold products, such as produce, baked goods, and other prepared items, with less weight than shown on the label.

The civil complaint, filed by a team of district attorney’s offices including Santa Clara County, alleged that the retailer unlawfully charged customers prices higher than their lowest advertised or posted price.

These actions violate California’s False Advertising and Unfair Competition Laws. Walmart operates 280 stores in California, including 10 in Santa Clara County, the lawsuit had charged.

This is not the first time Walmart has been in trouble for similar issues. In 2012, the company paid $2.1 million for overcharging consumers in violation of a 2008 judgment against the retail chain.

Walmart reached the latest settlement with the Santa Clara County, San Diego County, San Bernardino County, and Sonoma County district attorney’s offices.

“When someone brings an item to the register to be scanned, the price must be right,” District Attorney Jeff Rosen said. “They expect it. California expects it. My office expects it – and we will apply the law to make sure of it.”

The court ordered Walmart to pay $5.5 million in civil penalties for the violations in this case, and to maintain employees who will be responsible for price and weight accuracy in California stores. Walmart will also pay $139,909 to cover the costs of the investigations conducted by various Weights and Measures departments in the state. Santa Clara County will receive $1,375,000. The penalties will go to the Santa Clara County DA’s Consumer Protection fund, Rosen reported Friday.

The investigation of Walmart’s pricing and weight accuracy violations was assisted by inspectors from the Santa Clara County Weights and Measures Division, the Division of Agriculture and the Department of Environmental Health.

To report pricing and purchase weight issues at any store in Santa Clara County, consumers may contact the Weights and Measures Division by submitting an online complaint form, or by calling 1 (866) SCANNER or (408) 918-4601.

 

Three decades of journalism experience, as a writer and editor with Gannett, Knight-Ridder and Lee newspapers, as a business journal editor and publisher and as a weekly newspaper editor in Scotts Valley and Gilroy; with the Weeklys group since 2017. Recipient of several first-place writing and editing awards, California News Publishers Association.

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