Facts

Plaintiff, the People of the State of California, sued defendant Wal-Mart Inc., in December 2005, for violation of the Business and Professions Code.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended defendant was charging customers a higher price at the cash register than those advertised on store shelves and signs. Defendant engaged in unfair competition and deceptive marketing by making untrue or misleading statements to the public about goods.

Injuries

Plaintiffs sought injunctive relief and civil penalties.

Result

The case settled with defendant's agreement to implement a pricing-accuracy program in California for at least four years. This included a designated person at its corporate headquarters to receive and maintain customer complaints; employees in every Wal-Mart store who would scan items weekly to ensure pricing accuracy; an automatic refund program giving customers a $3 reduction at the cash register when he is over-charged at a higher price than the lowest advertised price; and a sign posted at every check-out stand notifying customers of the refund policy. Defendant agreed to pay $1,200,000 in civil penalties, $190,621 to reimburse investigative costs, and $50,000 to the Consumer Protection Prosecution Trust Fund.

Other Information

FILING DATE: Nov. 24, 2008.