A RECENT lawsuit filed against Walmart has been settled, and thousands of consumers may have been affected.
The retail giant agreed to a $5.6 million pot this summer to resolve the litigation and avoid further legal costs.
Walmart has paid out $5.6 million in a recent settlement (stock image)[/caption]
Plaintiffs in the suit accused Walmart of allegedly selling items with less weight than what was marked on pricing labels, resulting in an inaccurate higher cost for customers on baked goods, produce, and other prepared foods, per a news release from the County of Santa Clara’s District Attorney’s Office in California.
Walmart operates 280 stores in The Golden State, and over 4,600 nationwide.
Several California counties, along with Santa Clara, argued in the case that the retailer allegedly and unlawfully charged shoppers more than their lowest advertised pricing.
This included fellow District Attorney’s Offices in San Bernardino, San Diego, and Sonoma.
Officials said that Walmart’s alleged actions violated California’s False Advertising and Unfair Competition Laws.
“When someone brings an item to the register to be scanned, the price must be right,” Jeff Rosen, district attorney (DA) for Santa Clara County, said in a statement.
“They expect it. California expects it. My Office expects it — and we will apply the law to make sure of it.”
Walmart has not admitted to any wrongdoing in the case, but agreed to the $5.5 million in civil penalties and $139,908.92 in investigation costs.
NEVER AGAIN?
The $5.5 million will also help “maintain employees who will be responsible for the price and weight accuracy in the California stores,” according to the release.
With the $139,908.82, the funds will cover several investigations from the Weights and Measures departments.
Santa Clara County is also to receive $1.375 million from the pot specifically, which will be awarded to the Santa Clara County DA’s Consumer Protection Fund.
It’s unclear if affected shoppers who claim they paid more for select weighted items will get a payout from the settlement pot.
This also isn’t the first time that Walmart has been forced to pay up for similar claims.
In 2012, Walmart paid out $2.1 million for the overcharging of shoppers after it was found violating a judgement made in 2008, as noted by the County of Santa Clara.
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
DATA BREACH
Walmart customers did get a chance to claim a direct payment recently as the result of a data breach settlement.
Except, it specifically involved prepaid phone service TracFone, a company that resides under the Walmart Family Mobile banner.
TracFone provides services through Straight Talk, Simple Mobile, and Net10 Wireless, and was accused of failing to protect caller details during a December 2021 breach.
Plaintiffs in the suit argued that TracFone didn’t have adequate cybersecurity measures in place to prevent it.
While TracFone didn’t admit to any wrongdoing, it agreed to a settlement pot and estimated payouts up to $53,250 for losses related to identity theft, fraud, or lost business opportunity costs.
A deadline to file a claim recently passed on August 7.
Those who filed an eligible claim in time can expect to get money sometime after September 16, the final approval hearing for the case.
Walmart also came under fire after an employee uncovered an “unaffordable” $35 markup on a kitchen appliance.
Additionally, the retail giant is set to “lose an entire fleet of shop-in-shops” after an iconic brand filed for bankruptcy.
