Facts

Sears, Roebuck and Company and Kmart were investigated by various California weights and measures agencies, including Los Angeles County Weights and Measures Department, regarding their pricing and scanning practices. The Los Angeles County District Attorney's Office, along with District Attorneys of the Counties of Marin, Alameda, Sonoma, Santa Clara, and Santa Cruz, filed suit against the companies, alleging that Sears and Kmart charged more than advertised prices for certain merchandise.

PLAINTIFF'S CONTENTIONS:
Plaintiffs alleged that Kmart charged more than advertised prices for certain merchandise and violated the California Beverage Container and Recycling and Litter Reduction Act by overcharging for California Redemption Value (CRV) beverage containers, as well as charging a CRV fee for containers not covered by state law.

Result

The parties reached a settlement for $1.1 million. Sears and Kmart did not admit liability, but agreed to pay civil penalties and costs, and desist from making false or misleading statements regarding price in advertisements. The companies were required to conduct weekly in-store audits, as well as subject to yearly, independent audits.