SAN RAFAEL (KPIX 5) — Target Stores has agreed to pay nearly $4 million to settle claims it’s been overcharging customers.
The action was filed by Marin County District Attorney Edward S. Berberian.
The lawsuit alleges Target violated false advertising and unfair competition laws. Since 2008, the retailer was allegedly charging more at the register than the price posted on the shelf.
Apparently the expired shelf tags were not getting changed out, so now the retailer must now designate one person to inspect every price tag in the store after they are swapped out each weekend.
The District Attorney also found some of Target’s products weighed less than indicated on the packaging. The company must now hire third party auditors to inspect its products.
Unlike a similar injunction against Safeway, Target will not be required to give customers the overcharged items for free. However, Target already has a unique policy that gives the cashier the discretion to adjust a price on the spot if a customer believes they were charged the wrong price.
Under the judgment, now whenever they do a price override, the store will have two hours to fix the price problem – either on the shelf or at the register.
This is the second injunction of its kind for the nation’s second largest retailer.