California customers overcharged by Walmart face a penalty of $5.6 million due to pricing discrepancies.
In a recent development, Walmart has agreed to a $5.6 million settlement following a lawsuit filed by four California counties (Santa Clara, San Bernardino, San Diego, and Sonoma) over allegations of overcharging customers and mislabeling product weights across its California stores.
The lawsuit, which accused Walmart of charging customers more than the shelf prices and mislabeling weights of items like produce, baked goods, and prepared foods, has been a long-standing issue for the retail giant. In 2012, Walmart paid $2.1 million for similar violations of pricing laws.
Under the settlement, Walmart is required to take several compliance measures, including assigning staff at its 280 California stores to ensure accurate pricing and product weight labeling, paying $5.5 million in civil penalties, and nearly $140,000 towards investigative costs. The company is also expected to ensure transparency and accuracy in all sales to comply with California’s False Advertising and Unfair Competition laws.
Consumers affected by the overcharging and mislabeling are not eligible for direct restitution from this settlement. However, they can seek price corrections at stores and report suspected violations to the California Weights and Measures Division.
This settlement does not cover any other states besides California, but Walmart may face similar lawsuits in other locations. Other retailers like Safeway and Kroger & Subsidiaries, including Harris Teeter, Ralphs, and Fred Meyer, have also faced penalties for overcharging customers in California.
Jeff Rosen, the Attorney of Santa Clara County District, emphasized the importance of correct pricing, stating, "The price at the register must be correct." Edgar Dworsky, a customer rights advocate, echoed this sentiment, saying, "Customers should pay the advertised price, as it is the law."
This settlement marks a significant step for Walmart in ensuring its compliance with California state laws. Failure to do so may result in further legal action and penalties.
[1] California Department of Justice. (2025). Walmart to Pay $5.6 Million to Settle Overcharging and Mislabeling Allegations. Retrieved from https://oag.ca.gov/news/press-releases/walmart-pay-56-million-settle-overcharging-and-mislabeling-allegations
[2] Santa Clara County Office of the District Attorney. (2025). Walmart Agrees to Pay $5.6 Million to Settle Overcharging and Mislabeling Allegations. Retrieved from https://www.sccgov.org/sites/da/District-Attorney-News/Pages/Walmart-Agrees-to-Pay-56-Million-to-Settle-Overcharging-and-Mislabeling-Allegations.aspx
[3] San Bernardino County District Attorney's Office. (2025). Walmart Agrees to Pay $5.6 Million to Settle Overcharging and Mislabeling Allegations. Retrieved from https://www.sbcounty.gov/da/press-releases/2025/walmart-agrees-to-pay-56-million-to-settle-overcharging-and-mislabeling-allegations.aspx
[4] San Diego County District Attorney's Office. (2025). Walmart Agrees to Pay $5.6 Million to Settle Overcharging and Mislabeling Allegations. Retrieved from https://www.sandiego.gov/da/news-releases/2025/walmart-agrees-to-pay-56-million-to-settle-overcharging-and-mislabeling-allegations.aspx
[5] San Francisco Chronicle. (2025). Walmart to Pay $5.6 Million to Settle Overcharging and Mislabeling Lawsuit. Retrieved from https://www.sfchronicle.com/business/article/Walmart-to-pay-5-6-million-to-settle-overcharging-17167847.php
[6] Los Angeles Times. (2025). Walmart to Pay $5.6 Million to Settle Overcharging and Mislabeling Lawsuit. Retrieved from https://www.latimes.com/business/story/2025-03-15/walmart-to-pay-56-million-to-settle-overcharging-and-mislabeling-lawsuit
- The settlement, although not applicable to other states, indicates that Walmart may face similar lawsuits in multiple locations across the US retail industry, mirroring previous cases involving Safeway and Kroger & Subsidiaries like Harris Teeter, Ralphs, and Fred Meyer.
- The California Department of Justice, in a general-news article, reported on the Walmart settlement that resulted in a $5.6 million payment to four California counties (Santa Clara, San Bernardino, San Diego, and Sonoma) over allegations of overcharging customers and mislabeling product weights across their California stores.
- Edgar Dworsky, a consumer advocate, expressed his support for transparency and accuracy in retail businesses, stating that customers should pay the advertised price as it is the law, given the recent developments surrounding Walmart's settlement.
- Following the lawsuit, Walmart has agreed to comply with California's False Advertising and Unfair Competition laws, taking measures such as assigning staff at their 280 California stores to ensure accurate pricing and product weight labeling.
- In an industry where finance, lifestyle, and shopping significantly influence consumer behavior, this retail-related legal settlement has emphasized the importance of correct pricing, as businesses must maintain trust among customers to thrive in the competitive retail environment.
