Lowe’s settles California lawsuit claiming customers were overcharged

Home improvement retailer Lowe’s will pay $1 million to settle a lawsuit alleging that its 110 stores across California charged customers more than the prices advertised.

The Los Angeles County District Attorney’s Office said the lawsuit was led by the San Diego County District Attorney’s Office, with support from district attorneys in Sonoma, Orange, San Bernardino, and Alameda counties.

However, the alleged overcharging extended beyond those jurisdictions.

“From 2018 to 2022, Lowe’s received price accuracy violations in 10 counties, with 4.4% of items overcharged and an average overcharge of 19.3%,” the L.A. District Attorney’s Office said in a news release.

“This settlement protects shoppers, ensures fair pricing at checkout, but equally important, holds retailers accountable for illegal business practices,” L.A. County District Attorney Nathan 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.”

In addition to the $1 million penalty — $166,666 of which will go to L.A. County — Lowe’s will pay more than $61,000 in investigative costs and restitution, as well as make mandatory changes at the store level, perform better staff training and conduct periodic price audits.

Lowe’s is also explicitly prohibited from charging more than what’s posted on the product or shelf tag or charging more than an advertised price.

The settlement, however, did not force Lowe’s to admit liability.