Walmart Faces Lawsuit Over Pricing Practices
Walmart Faces Lawsuit After a federal appeals court in Chicago ruled on Wednesday that the retail giant must proceed with a lawsuit accusing them of misleading customers with checkout prices that differ from those displayed on store shelves.
The 7th U.S. Circuit Court of Appeals overturned a previous decision by a lower court judge, allowing consumers to pursue claims in their proposed class action lawsuit.
Walmart Faces Lawsuit for potentially deceptive practices that could be in violation of consumer protection laws across multiple states.
Appeals Court Rejects Walmart’s Arguments in Lawsuit
The appeals court specifically rejected Walmart's arguments that providing receipts after purchases addressed any unfairness caused by inaccurate shelf prices.
Walmart must face lawsuit over deceptive pricing in stores https://t.co/xrK0JSp3fz pic.twitter.com/UuawJVuNNe
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Judge David Hamilton, writing for a panel of three judges, stated that it was reasonable for consumers to expect Walmart to charge the prices displayed on store shelves, dismissing Walmart's claims otherwise.
Walmart, headquartered in Bentonville, Arkansas, has not yet responded to requests for comment from its lawyers. The lawsuit's lead plaintiff, Yoram Kahn, resides in the Cleveland area.
Consumers Allege Widespread Price Discrepancies
Consumer advocates' attorneys argue they identified discrepancies in pricing across several states including Florida, Illinois, Indiana, Maryland, New Jersey, New York, and North Carolina.
This comes despite a prior fine imposed on Walmart in North Carolina in 2022 for errors in price scanning.
The attorneys noted that while most discrepancies were minor—for instance, one Walmart in New Jersey charged $3.64 for Crisco Pure Canola Oil compared to the advertised $3.12, and another charged $2.48 for Hershey's Chocolate Syrup versus the listed $2.33—they collectively represented significant amounts.
Court Sides with Consumers, Lawsuit Proceeds
Judge Hamilton argued that consumers cannot reasonably be expected to vigilantly monitor prices at the checkout counter, where distractions are abundant. He dismissed the idea that consumers should be responsible for remembering or recording shelf prices as they shop.
"Who would realistically do that?" he questioned.
The appeals court has sent the case back to U.S. District Judge Sara Ellis in Chicago, who had dismissed it in March 2023.
"We are pleased with the ruling and look forward to upholding the rights of Walmart customers," stated Stanley Bernstein, an attorney representing the plaintiffs.
The case is identified as Kahn v. Walmart Inc, 7th U.S. Circuit Court of Appeals, No. 23-1751.
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