Home Contra Costa County Target Ordered to Pay $3,941,118 to Resolve Allegations of Price Overcharges and False Advertising

Target Ordered to Pay $3,941,118 to Resolve Allegations of Price Overcharges and False Advertising

by ECT

Contra Costa County District Attorney Mark Peterson announced today that Target Corporation entered into a Stipulated Judgment and will pay $3,941,118 to settle a civil law enforcement complaint that alleged that Target engaged in false advertising and unfair competition and violated a 2008 injunction.

The action was filed in Marin County Superior Court by Peterson’s Environmental and Consumer Law Division along with the District Attorneys of Marin, Sonoma, Fresno, Santa Cruz, and the San Diego City Attorney’s Office.

In a joint statement by the respective District Attorneys, “We are committed to prosecuting pricing accuracy violations and ensuring that businesses charge customers accurately and in compliance with California law. Consumers should always watch as items are scanned at the register and check receipts to verify that they are charged the correct price.”

The Complaint filed by prosecutors alleged that Target unlawfully charged customers prices higher than Target’s lowest advertised price for items. The Complaint further alleged that Target failed to abide by provisions of a 2008 injunction requiring it to initiate and maintain a program to minimize pricing discrepancies.

The Judgment includes a permanent injunction that prohibits Target from engaging in false or misleading advertising, and charging an amount greater than the lowest price posted for an item. The Judgment further requires Target to implement additional audit and price accuracy procedures in its California stores for a seven year period to ensure compliance with pricing accuracy requirements, including notifying the public about their Price Accuracy Program. The Judgment orders Target to pay $3,941,118 in civil penalties, costs and restitution. Target cooperated with inspectors and prosecutors during the investigation, and has since instituted new policies and procedures to improve pricing accuracy.

The Contra Costa County Agricultural Commissioner, Weights and Measures Division, is the agency which inspected Target stores throughout Contra Costa County, and is instrumental in monitoring retailers to make sure that consumers are being charged the lowest advertised price for items. The agency takes complaints from members of the public who believe they have been overcharged by businesses at (925) 646-5250.

Deputy District Attorney Gary Koeppel prosecuted the case for the Contra Costa District Attorney’s Office, and can be reached at 925-957-8788.

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