Walmart Hit with Class Action Lawsuit Alleging Deceptive Pricing Tactics

Walmart and the Class Action Lawsuit

Walmart is currently under scrutiny as it faces class action lawsuit more than supposedly Deceptive and unfair pricing practices on food products, according to a federal appeals court ruling on July 3, 2024.

The lawsuit, filed by plaintiff Yoram Kahn, accuses the retail giant of taking advantage of consumers through small price discrepancies that add up to “hundreds of millions of dollars per year,” FOX8 reports. Kahn claims Walmart knowingly engages in these unfair practices, which he describes as both widespread AND continuous.

Kahn recounts his experience at a Walmart in Niles, Illinois, on August 2, 2022. He made purchasing decisions based on prices marked on shelves. However, when he went to the checkout, he scanned 15 items and later discovered that six of them were marked up by 10 to 15 percent above the shelf prices.

  • Walmart allegedly engages in unfair pricing practices which results in slight price differences.
  • It is estimated that these differences amount to a significant amount annually.
  • Kahn’s specific incident involved a noticeable difference between prices on the shelves and prices at the checkout.
  • The lawsuit claims that Walmart is aware of these discrepancies and continues to tolerate them.

This class action lawsuit highlights the importance consumer awareness and the need corporate responsibility in retail practices. As the legal proceedings unfold, it will be crucial to see how this case impacts both Walmart and consumer protection law.

In total, Kahn paid Walmart $1.89 for the six items, nearly seven percent of the total pre-tax amount on his bill, the lawsuit alleged. “Not much change for Kahn as an individual, no doubt, but remember the size of Walmart’s business.”

Walmart’s response

A Walmart spokesperson recently provided the following explanation to Nexstar’s KNWA:

“We will always work to provide our customers with the low prices they can count on. We are confident in the evidence and look forward to presenting our case.”

Legal Battle Timeline

That case was previously dismissed in March 2023 after a judge ruled that Walmart providing a receipt after a purchase negated the unfairness of the shelf-price inaccuracies. But the 7th U.S. Circuit Court of Appeals in Chicago recently reversed a lower judge’s ruling and said customers can try to prove the company used a “bait and switch” tactic that violates Illinois consumer protection laws.

Walmart’s legal woes: a recurring theme

This is not the first time the company has had legal problems related to its operations. pricing practicesIn June alone, Walmart agreed to pay $1.64 million to settle claims in New Jersey over inconsistent unit pricing. The settlement was disclosed in a press release from New Jersey Attorney General Matthew J. Platkin.

New Jersey Discoveries

The New Jersey Division of Consumer Affairs conducted an investigation that uncovered serious violations. Under the consent decree, 64 Walmart stores in the state did not use a standard unit of measure — such as a quart, pound or per 100 sheets — for groceries and other items. This lack of standardization led to confusion and potentially unfair prices for consumers.

Walmart’s Digital Solution

In response to these issues, the company announced plans to install digital shelf labels in almost 2,300 stores by 2026. This innovative solution will allow employees to update prices via a mobile app, effectively eliminating the need to manually replace paper price tags.

The company believes this will streamline the process and ensure pricing accuracy. So while the company continues to navigate legal challenges, it is also taking proactive steps to improve its pricing practices and enhance the shopping experience for customers.

Key conclusions

  • A judge has dismissed a Texan’s lawsuit against Walmart seeking $100 million.
  • The company settled with New Jersey for $1.64 million over inconsistent unit pricing.
  • An investigation by New Jersey authorities found that 64 of the company’s stores violated unit pricing laws.
  • By 2026, the company plans to install digital shelf labels in 2,300 stores to ensure price accuracy.