The settlement prohibits Lowe’s from advertising a price then charging a higher price at the point of sale
LOS ANGELES — Lowe’s, a national home improvement and hardware retailer with 110 stores in California, has been ordered by the Court to pay $1 million to resolve a civil lawsuit alleging the company charged prices higher than the lowest advertised or posted price and falsely advertised accurate prices for products.
“This settlement protects shoppers, ensures fair pricing at checkout, but equally important, holds retailers accountable for illegal business practices,” Los Angeles County District Attorney Nathan J. Hochman said. “Thanks to our Consumer Protection Division, particularly Deputy District Attorney Louis Morin who handled the case, and our partner district attorney’s offices throughout California, every violation has been addressed and reforms are in place statewide. Let this be a warning to retailers, my office will continue to hold corporations accountable and defend Los Angeles County consumers from unfair business practices.”
From 2018 to 2022, Lowe’s received price accuracy violations in 10 counties, with 4.4 percent of items overcharged, and an average overcharge of 19.3 percent.
The lawsuit was led by the San Diego County District Attorney’s Office and included the assistance of the District Attorney’s Offices in Los Angeles, Sonoma, Orange, San Bernardino, and Alameda counties.
Under the final judgment, filed in San Diego County Superior Court entered Sept. 5, the settlement includes:
- Injunctive relief: mandatory store-level changes, enhanced staff training, and periodic price audits.
- Civil penalties: $1 million total, with the Los Angeles County District Attorney’s portion approximately $166,666.
- Investigative costs and restitution: $61,215.90 total ($29,519.37 investigative costs; $28,784 cy pres restitution to the California Agricultural Commissioners and Sealers Association Quantity Control Trust Fund).
The settlement explicitly prohibits Lowe’s from:
- Charging at the time of sale an amount greater than the lowest advertised price for a product.
- Violating Business and Professions Code section 12024.2(a)(2) by charging more than the price posted on the product or shelf tag.
- Making any statement representing an advertised price and then charging a higher price at the point of sale in California Lowe’s stores.
As part of this settlement, the company did not admit liability.
