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Walmart To Face Overcharging Lawsuit

By Nithya Bose in Business News, posted July 4, 2024

Walmart will face a lawsuit alleging it frequently charges higher prices at the register than those posted on store shelves.

A federal appeals court ruling said the retailer’s practices cost consumers hundreds of millions annually.

The 7th US Circuit Court of Appeals in Chicago reversed a lower court's decision.

It ruled consumers could attempt to prove in a proposed class action Walmart's actions constituted a fraudulent "bait-and-switch," violating several states' consumer protection laws.

The court also dismissed Walmart's argument providing receipts after purchases negated any unfairness caused by inaccurate shelf prices.

Circuit Judge David Hamilton, writing for a three-judge panel, said it was "neither unreasonable nor fanciful" for consumers to expect Walmart to charge the prices displayed on shelves.

Walmart's representatives did not immediately respond to requests for comment.

The named plaintiff, Yoram Kahn, hails from the Cleveland area.

Lawyers representing the consumers reported finding price discrepancies in several states.

These include:

Florida
Illinois
Indiana
Maryland
New Jersey
New York
North Carolina

This comes even after North Carolina fined Walmart in 2022 for price-scanning errors.

The discrepancies were generally small but significant.

Lawyer: “We are pleased with the opinion and look forward to vindicating the rights of Walmart customers”

For example, a Walmart in New Jersey charged $3.64 for Crisco Pure Canola Oil versus the $3.12 shelf price, and another charged $2.48 for Hershey's Chocolate Syrup versus the $2.33 shelf price.

These small differences added up quickly over time.

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Judge Hamilton said consumers cannot be expected to monitor prices at checkout vigilantly.

He stressed they could have distractions like young children, tabloid headlines, or handling wallets and merchandise can occur.

The judge added that it is unreasonable to expect consumers to keep track of shelf prices by memory or create a record while shopping.

He wrote: "Who does that?"

The appeals court returned the case to US District Judge Sara Ellis in Chicago, who dismissed it in March 2023.

Stanley Bernstein, a lawyer for the plaintiffs, said: “We are pleased with the opinion and look forward to vindicating the rights of Walmart customers.”

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