Personal Finance

Walmart hit with $5.6 million penalty for overcharging shoppers in California

Walmart hit with $5.6 million penalty for overcharging California shoppers; state officials say pricing errors violated consumer protection laws, impacting thousands of customers across multiple stores.

Walmart  $5.6 million penalty in Calfornia: Several counties in California have taken Walmart to court again. The district attorneys from Santa Clara, San Diego, San Bernardino, and Sonoma say the company broke state laws by giving customers the wrong prices and selling products that weighed less than what the labels claimed. This means people were paying more but getting less than what they thought they bought.

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Walmart  $5.6 million penalty in Calfornia

Officials say the problem was found in many products, like bakery items, fruit, and ready to eat food. The prices shown on store shelves did not always match what was charged at the checkout. Some items also had less weight than printed on the packaging. With 280 stores in California, and 10 in Santa Clara County alone, these mistakes affected a lot of shoppers.

Santa Clara County’s District Attorney Jeff Rosen said his office will make sure prices match. “When someone brings an item to the checkout, the price should be right. Customers expect it, California expects it, and my office will make sure it is enforced,” he said.

Agreement details

As part of the agreement, Walmart will pay:

  • $5.5 million in civil penalties.
  • $139,908.92 to cover the research costs of the state’s Weights and Measures departments.
  • $1,375,000 will go to the Santa Clara County Consumer Protection fund.

As part of the case, Walmart must now assign workers at all its California stores to regularly check that prices and weights are correct.

Walmart ordered to make Changes

This is not the first time the company has faced such a problem. Back in 2012, Walmart had to pay $2.1 million for the same kind of violations. That case went back to a 2008 court order telling the company to fix pricing errors right away.

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The coordinated lawsuit shows that the state is taking the issue seriously and will not allow big companies to ignore consumer protection laws.

What Shoppers should do?

Officials are asking customers to keep an eye on their receipts and to check the weight and price of what they buy. If something is wrong in Santa Clara County, people can file a complaint online, by email, or by calling 1 (866) SCANNER.

The agreement in this case is meant to remind big retailers that correct prices and weights are not optional.

Farheen Ashraf

Farheen Ashraf is a History graduate. She writes on a variety of topics, including business, entertainment, laws, poetry, stories, travel, and more. Her passion for writing has led her to explore a variety of genres.

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