Target fined $5 million for misleading customers with prices
Supermarket chain Target has paid $5 million in compensation for inflating product prices and changing them in its application depending on the geographic location of the user, reports NBC.
$5 million was paid in civil penalties to settle the lawsuit, the San Diego District Attorney's office said March 10.
The complaint, filed by seven California District Attorney's offices, including the District of San Diego, alleged that Target charged prices higher than the company's lowest advertised price. Prosecutors also alleged that the Target app advertised different prices as soon as a shopper entered the perimeter of the Target store. If the app advertised a different price for a product than what is available in the store, customers were not informed where to buy the product at the advertised price, the complaint alleges.
“In this lawsuit, we continue to protect consumers and their hard-earned money, and ensure that Target is held accountable if it breaks the law,” said San Diego District Attorney Summer Stefan.
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The ruling in the case includes an injunction preventing Target from charging more than the lowest listed price for an item and forbidding it from changing prices in its app based on a user's geographic location. If online and in-store prices differ, Target is required by the court to tell you where to get the item at the price advertised in the app.
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The district attorney's office said Target cooperated during the investigation and has since introduced new rules and procedures aimed at improving pricing accuracy.
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