Target Reaches $5M Settlement With California District Attorneys Over Alleged False Advertising
SANTA ROSA (BCN) – The Target Corporation has entered into a stipulated agreement to pay more than $5 million to settle a civil law enforcement complaint that alleged that the retail giant engaged in false advertising and unfair competition, the Sonoma County District Attorney's Office announced this week.
The action was originally filed in Sonoma County Superior Court by District Attorney Jill Ravitch's environmental and consumer law division in a joint filing with the district attorneys of Alameda, Marin, Contra Costa, Santa Cruz, Ventura and San Diego counties.
The Sonoma County Department of Agriculture/Weights and Measures division did the inspections of the Target stores, along with departments of agriculture from the other counties.
The complaint alleged Target charged customers prices higher than its lowest advertised price for items. Prosecutors also alleged that prices changed for some items once people who used the Target app on their phone entered the boundaries of the store.
The judgement includes an injunction that prohibits Target from engaging in false or misleading advertising or charging a price greater than that advertised. The judgement also bars Target from using app technology to cause the price of an item to increase based on the user's location and requires it to clearly state where a customer can obtain the item at the advertised price. Target will also be required to implement audit and price accuracy procedures in its stores for seven years.
The settlement includes $5 million in civil penalties, $200,000 in restitution to support future enforcement of consumer protection laws, and $173,618.18 total in costs to the multi-county departments of agriculture who conducted the investigation.
Target did not immediately respond to a request for comment.
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