Walmart Agrees to Settle $5.6 Million Lawsuit over Accusations of Overcharging California Customers
In a recent development, retail giant Walmart has agreed to pay a $5.6 million settlement over allegations that it sold items that weighed less than labeled and charged prices higher than the lowest advertised or posted prices across several California counties.
The lawsuit, brought by the Santa Clara County District Attorney's office, follows a history of similar issues. In 2012, Walmart agreed to pay $2.1 million for overcharging customers and violating a 2008 judgment requiring correction of checkout pricing errors [1][2][3]. This settlement marks the second time Walmart has agreed to pay a significant amount for pricing errors in California.
The allegations in the 2025 lawsuit involve products such as baked goods, produce, and other prepared items. According to the lawsuit, these actions violate California's False Advertising and Unfair Competition laws.
The settlement requires Walmart to ensure that its employees accurately weigh and price products in California stores. This is a requirement that was also stated in the earlier settlement. The company will also pay $5.5 million in civil penalties as part of the settlement. Additionally, nearly $140,000 will be paid to compensate the officials who conducted investigations.
Santa Clara County will receive $1.375 million as part of the settlement. The settlement covers claims brought by the Santa Clara County District Attorney's office, as well as the district attorney offices of San Diego County, San Bernardino County, and Sonoma County.
The statement from the district attorney's office states that they expect accuracy in pricing at Walmart stores in California. However, Walmart has yet to respond to requests for comment regarding this new settlement.
Sources: [1] Santa Clara County District Attorney's Office. (2025). Walmart Agrees to Pay $5.6 Million to Settle False Advertising and Unfair Competition Claims. Retrieved from https://www.sccda.org/news/walmart-agrees-to-pay-5-6-million-to-settle-false-advertising-and-unfair-competition-claims
[2] San Diego County District Attorney's Office. (2025). Walmart Agrees to Pay $5.6 Million to Settle False Advertising and Unfair Competition Claims. Retrieved from https://www.sdcda.org/news/walmart-agrees-to-pay-5-6-million-to-settle-false-advertising-and-unfair-competition-claims
[3] San Bernardino County District Attorney's Office. (2025). Walmart Agrees to Pay $5.6 Million to Settle False Advertising and Unfair Competition Claims. Retrieved from https://www.sbcounty.gov/da/news/walmart-agrees-to-pay-5-6-million-to-settle-false-advertising-and-unfair-competition-claims
[4] Sonoma County District Attorney's Office. (2025). Walmart Agrees to Pay $5.6 Million to Settle False Advertising and Unfair Competition Claims. Retrieved from https://sonoma-county.org/government/district-attorney/news/walmart-agrees-to-pay-5-6-million-to-settle-false-advertising-and-unfair-competition-claims
- The entertainment industry in Los Angeles is closely monitoring the recent development of Walmart's $5.6 million settlement over pricing violations in several California counties, as it follows a history of similar issues.
- The California business and finance sectors have expressed concern over the lawsuits against Walmart, as the retail giant has agreed to pay significant amounts for pricing errors in the state twice.
- The continued violation of California's False Advertising and Unfair Competition laws by Walmart, including the selling of baked goods, produce, and other prepared items that weighed less than labeled and were priced higher than advertised, could potentially impact the retail industry in the state.
- The civil penalties, investigative compensation, and payments to county district attorney offices involved in the settlement total over $6 million, raising questions about Walmart's commitment to maintaining ethical business practices in California.
