A federal appeals court ruling on July 3 has paved the way for a class-action lawsuit against Walmart, alleging the retail giant used inaccurate price labels in its stores. The 7th U.S. Circuit Court of Appeals in Chicago issued the order, allowing consumers to pursue claims that Walmart violated consumer protection laws.
At the core of the lawsuit is the accusation that Walmart's inaccurate pricing practices amount to a 'bait-and-switch' scheme, where purchase prices exceed those displayed on shelves. The case was initiated by an Ohio resident who discovered a 10-15% markup on items purchased at a Walmart store in Niles, Illinois, in August 2022.
The lawsuit alleges similar price discrepancies were found at Walmart locations across several states, including Florida, Indiana, Maryland, New Jersey, and New York. It also references previous legal actions against Walmart, such as a 2012 California court ruling that fined the company $2 million for failing to rectify pricing errors at checkout.
In a separate incident, two North Carolina-based Walmart locations were fined in 2021 for excessive scanning charges that led to overcharging customers. Walmart recently settled a case in New Jersey, agreeing to pay $1.64 million to customers over allegations of unlawful unit pricing practices.
The court ruling highlighted the impracticality of consumers monitoring price discrepancies between shelves and checkout prices, emphasizing that such audits are not feasible for the average shopper. Walmart has been contacted for comment on the matter.
In response to these issues, Walmart announced plans to test digital shelf labels that would streamline pricing management in stores. The new technology would enable prices to be updated using a mobile app, reducing the manual effort required to change paper tags and allowing staff more time to assist customers in-store.
These developments underscore the ongoing legal challenges faced by Walmart regarding pricing accuracy and consumer protection. The outcome of the class-action lawsuit could have significant implications for how retailers handle pricing practices and ensure transparency for customers.
