Walmart has agreed to pay $5.6 million to settle a lawsuit. This was filed by the district attorneys of four California counties: Santa Clara, San Diego, San Bernardino, and Sonoma. Authorities accused the company of charging higher prices than advertised and selling products that weighed less than indicated.
Walmart and consumer protection
The investigation revealed that on multiple occasions, prices at checkout exceeded those advertised on the shelves. It was also found that some products, especially fresh foods and bakery items, weighed less than what was stated on the label. According to prosecutors, these practices violate state laws on false advertising and unfair competition.
The settlement includes $5.5 million in civil penalties and $139,908 to cover investigation costs. Walmart has also committed to strengthening its internal controls. Among the measures is the assignment of specific staff in stores to ensure price and weight accuracy.
Sam’s Club remains on the sidelines
Although Sam’s Club is owned by Walmart Inc., the membership-based warehouse club chain is not part of the lawsuit or the settlement. The legal action focused exclusively on Walmart's operations within the state of California.
Experts point out that the operational and legal separation between the two brands explains this exclusion. Sam’s Club keeps its own business model and control systems, which may have prevented its involvement.
Background and context
This is not the first time Walmart has faced penalties over price accuracy issues. In previous years, state and local authorities had already warned the company about the need to improve its control systems.
The current case reinforces the image of a company under constant scrutiny from regulators and consumer associations. The fine, although it doesn't jeopardize its financial stability, is a blow to its reputation in an increasingly competitive market.
The district attorneys celebrated the settlement as a victory for consumers. "Companies must deliver what they advertise. A shelf price is a promise that can't be broken," said a spokesperson for Santa Clara County.
Meanwhile, Walmart issued a statement denying intentional wrongdoing but acknowledging the need to strengthen internal processes. "Our commitment to the customer is absolute. We will continue to improve to offer transparency and trust," the company stated.
Future implications
Although Sam’s Club is not involved, the case could serve as a warning to the entire Walmart group. Authorities have made it clear that they will continue to closely monitor strict compliance with consumer protection laws.
At a time of intense competition, with rivals like Amazon and Target ramping up their strategies, any reputational blow can affect sales and customer loyalty. The challenge for Walmart will be to prove that the incident is an isolated event and not a recurring pattern.