The San Diego District Attorney’s office announced Target agreed to pay $5 million in civil penalties to settle a lawsuit alleging the company misled customers with featured prices on its app, and overcharged customers for some items.
According to the complaint, Target charged prices that were higher than the company’s advertised price, and the prices differ once customers enter a physical store. Prosecutors alleged that customers were not informed where to purchase the item for the advertised price.
"With this latest lawsuit, we're continuing to protect consumers and their hard-earned money, as well as ensuring that Target is held responsible when it violates the law," San Diego County District Attorney Summer Stephan said.
An injunction to prohibit Target from charging an amount greater than the lowest price posted was included in the case. With this, Target is prohibited from changing prices on its app based on the customer’s geographic location.
Under the settlement, Target must disclose where an item may be obtained for its advertised price on the online applicaiton.
The complaint was filed by seven District Attorney’s offices in the state, including San Diego County. According to the DA’s office, Target was cooperative during the investigation and has since instituted new policies and procedures aimed at improving pricing accuracy.
