Walmart to pay $5.6M in lawsuit for overcharging customers in California

(KTLA) – California officials announced Friday that Walmart, the nation’s largest retailer, will pay $5.6 million to settle a consumer protection lawsuit accusing the company of overcharging its customers.

According to the Santa Clara County District Attorney’s Office, Walmart allegedly sold products with less weight than what was shown on the label — including produce, baked goods and other prepared foods or items.

The civil complaint, filed by multiple California counties, also accused the retail giant of unlawfully charging customers more than their lowest advertised or posted price.

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

Walmart, which operates 280 stores in California and 5,200 stores and clubs nationwide, was also sued for overcharging customers in 2012 and paid $2.1 million to settle.

As of Friday’s announcement, Walmart will again be paying millions — this time $5.5 million in civil penalties, and $139,908 to cover the costs of the investigations.

The penalties come less than a year after another grocery giant, Safeway, was ordered to pay $4 million when an investigation found they were overcharging customers at California stores. According to the lawsuit settled in October 2024, Safeway was regularly charging customers more than the listed price of products. Other products allegedly had inaccurate weights advertised.

A separate investigation by Consumer Reports earlier this year of Kroger and Kroger-owned stores in 14 states found widespread problems with the retailers overcharging customers. The stores, which included Harris Teeter, Fred Meyer, Fry’s, and Ralphs locations, often had sale prices advertised that had expired, the investigation found. The result was shoppers thinking they’re paying a lower price, but being rung up for the full cost.

“People should pay the price that is being advertised, that’s the law,” consumer advocate Edgar Dworsky told Consumer Reports.