Walmart Pays $5.6M Settlement for Overcharging in California Stores

Walmart has agreed to pay nearly $5.64 million to settle allegations of false advertising and unfair competition brought by four California counties, including Santa Clara, San Diego, San Bernardino, and Sonoma. The lawsuit accused Walmart of overcharging customers by charging prices higher than the lowest advertised or posted price and selling products such as produce, baked goods, and prepared foods with less weight than indicated on labels, violating California’s False Advertising and Unfair Competition Laws. As part of the settlement, Walmart will pay $5.5 million in civil penalties and approximately $139,909 to cover investigation costs, with Santa Clara County receiving $1.375 million to fund consumer protection enforcement. The settlement also requires Walmart to designate employees responsible for ensuring price and weight accuracy in its 280 California stores to prevent future violations. Santa Clara County District Attorney Jeff Rosen emphasized the importance of accurate pricing at checkout, stating his office will enforce the law to protect consumers. This settlement follows a previous $2.1 million penalty Walmart paid in 2012 for similar overcharging violations in California.