Walmart has agreed to pay $5.6 million to settle the consumer protection lawsuit that raised allegations that the company overcharged customers in California and also sold products by reflecting a default weight that is less than the actual stated on the label.
Walmart Agrees to Pay $5.6 Million
According to the reports, the Arkansas-based retailer was suspected of inflating prices on products such as prepared foods, baked foods, and others, and charging more than the label price. The proposed class action settlement amounts to a considerable $5.6 million. The prosecuting attorney alleged that these activities of the company dishonored California’s False Advertising and Unfair Competition Laws.
Santa Clara County District Attorney Jeff Rosen stated that when someone comes to bring something and registers to be scanned, then the price of that item must be right. The civil complaint was filed together by the district attorney’s offices of Santa Clara, San Diego, San Bernardino, and Sonoma counties.
Overview of Walmart $5.6M Settlement
| Article on | Walmart to pay $5.6 million for overcharging customers in California. |
| Country | United States of America |
| Eligible claims | overcharged customers in California |
| Claim Deadline | January 10, 2025 |
| Settlement Amount | $5.6 million |
| Category | Finance |
| Official website | walmart.com |
What it Means for Shoppers?
The proposed class action settlement amounts to a considerable $5.6 million against Walmart for overcharging its customers. Walmart agreed to pay the total settlement amount, which is $5.6 million.
- Walmart agreed to pay a settlement amount to pay $5.5 million in civil penalties
- $139,908.92 to cover investigative costs of the state’s Weights and Measures departments.
- Santa Clara County will collect $1.375 million for its Consumer Protection Fund.
In addition, the company has to assign more employees to its California stores to ensure accuracy in pricing and weight.
Recidivism and Criminal Record
It is noted that this is not the first time Walmart has faced these types of allegations. In 2012, Walmart paid $2.1 million after being found in violation of a 2008 court judgment for overcharging its customers. At that time, the customers who were overcharged got $3 off at the time of checkout on the label, priced or the item is free if the cost of it is less than $3.
According to the agreement the Walmart has to assign employees to its 280 stores in California, including 10 in Santa Clara County, to ensure that there is accuracy in pricing and weight.
What Should Consumers Do?
Authorities stated thatif the Customer faced any problem so they can report the suspected violations to the Weights and Measures Division by filing the complaint form online or by calling 1-866-SCANNER or 408-918-4601.
This settlement seeks to send a strong message to all traders that accuracy in values and weights is non-negotiable. For customers, it is a prompt that attentiveness and reporting can bring about actual change.
Walmart will need to improve its practices, and customers should remain vigilant to protect their rights.
Final Thoughts
Walmart agreed to pay a settlement amount and committed to allocating this payment to all the eligible customers who submit a valid claim, as allegations were made against the company for overcharging its customers and by reflecting a default weight that is less than the actual stated on the label. The payment date is still not confirmed by the court, but the settlement amount is $5.6 million, which the company agreed to pay. It is anticipated that the settlement amount will be automatically dispersed to the eligible customers, or the customer might get a discount on the products.
Frequently Asked Questions
What was Walmart accused of in the lawsuit?
Walmart was accused of overcharging customers and selling items, like produce, baked goods, and prepared foods, with incorrect weights or prices higher than advertised.
What was the consequence of the lawsuit?
Walmart has agreed to pay $5.6 million to settle the consumer protection lawsuit that raised allegations that the company overcharged customers in California.
Who filed the Customer Support lawsuit?
The lawsuit was filed jointly by the District Attorney’s Offices of Santa Clara, San Diego, San Bernardino, and Sonoma counties.
Will customers receive refunds?
The settlement’s focus is on penalties and ensuring future accuracy. Whether shoppers affected by these specific violations will receive direct compensation is unclear.
What measures will Walmart take?
Walmart will assign employees in its California stores to ensure pricing and weight accuracy, aiming for greater transparency in future transactions.
