by Santa Clara, CA – Walmart will pay $5.6 million to settle a consumer protection lawsuit accusing the retail giant of overcharging customers and mislabeling product weights, prosecutors announced this week.
Allegations and Settlement
The lawsuit, filed by district attorney’s offices from Santa Clara, San Diego, San Bernardino, and Sonoma counties, alleged that Walmart violated California’s false advertising and unfair competition laws. Prosecutors said the company charged shoppers more than the lowest advertised or posted price and sold loose goods—such as fruits, vegetables, and baked items—with actual weights lower than those listed on labels.
Under the settlement terms, Walmart will pay $5.5 million in civil penalties and $140,000 to cover investigation costs. Santa Clara County will receive $1.4 million for its Consumer Protection Fund.
Why It Matters
Walmart is the largest U.S. retailer, with more than 4,000 stores nationwide and 280 in California. The company has faced mounting scrutiny in 2025 over pricing, corporate practices, and supply chain pressures—including tariff impacts that led to a brief clash with President Donald Trump earlier this year.
Past Violations
This isn’t Walmart’s first run-in with California regulators over pricing issues. In 2012, the company paid $2.1 million after failing to correct pricing errors identified in a 2008 court judgment. That case stemmed from a 2005 investigation revealing that over 100 Walmart stores in California charged customers more than the advertised prices.
Consumer Protection Reminder
“Consumers should feel confident that the price on the shelf will be the same price they are charged at the cash register,” then–California Attorney General Kamala Harris said in a past statement on the issue.
Officials encourage California shoppers to report any suspected overcharging to local consumer protection agencies.
