News Summary
Walmart will pay $5.6 million to settle a lawsuit alleging false advertising and unfair competition in California. The lawsuit stems from complaints about Walmart overcharging customers by marketing products that weighed less than labeled. The settlement includes financial penalties and requirements for oversight on pricing accuracy across its stores. This marks another incident in Walmart’s ongoing issues with pricing disputes, raising concerns about consumer protection standards in retail.
California – Walmart will pay $5.6 million to settle a consumer protection lawsuit filed by the Santa Clara County District Attorney’s Office in collaboration with three other counties: San Diego, San Bernardino, and Sonoma. The agreement is a response to allegations that Walmart overcharged customers by marketing products that were of less weight than what their labels indicated, including items such as produce, baked goods, and other prepared foods.
The civil complaint claimed that Walmart violated California’s False Advertising and Unfair Competition laws, which mandate that retailers adhere to their lowest advertised prices when charging customers. As part of the settlement, Walmart will allocate $5.5 million towards civil penalties, while an additional $139,908.92 will cover the costs incurred during the investigation related to the complaint.
Santa Clara County will receive approximately $1.375 million from the settlement, which will be directed into the district attorney’s Consumer Protection fund. In addition to financial penalties, the settlement agreement requires Walmart to implement employee oversight mechanisms aimed at ensuring the accuracy of product weights and pricing across all of its stores in California.
Walmart operates 10 stores within Santa Clara County and a total of 280 locations across the state. This latest lawsuit is not an isolated incident, as the company has previously been involved in legal disputes regarding pricing inaccuracies. In 2012, Walmart settled a similar lawsuit for $2.1 million, and records indicate that the company failed to comply with a past judgment from 2008 that required corrections to pricing errors at checkout stands.
Despite the company’s previous experiences, issues surrounding pricing accuracy appear to persist. For instance, earlier this year (2025), Walmart faced boycotts organized by the advocacy group People’s Union USA. These protests targeted the retailer over alleged unfair practices affecting small businesses and employee compensation, impacting both in-store and online shopping experiences at Walmart and its affiliated brands, including Sam’s Club and private labels like Great Value and Equate.
The investigation leading to the settlement was enhanced with support from several divisions, including the Santa Clara County’s Weights and Measures Division, the Department of Environmental Health, and the Division of Agriculture. Consumers within California are encouraged to report any concerns regarding product weights and pricing through various channels, including an online form, email, or telephone directly to the Weights and Measures Division.
This development highlights the ongoing challenges within retail pricing systems and underlines the importance of consumer protection laws designed to ensure fairness and accuracy. As regulations tighten and scrutiny increases, retailers like Walmart may face additional oversight aimed at protecting consumers from pricing discrepancies in the future.
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