The US Appeals Court in Illinois breathed new life into a 2022 lawsuit which accuses Walmart of deceptive pricing practices. The court’s decision to proceed potentially opens the door to a class-action suit against the retail giant.
A district court previously dismissed the lawsuit.
It ruled that if Walmart provided the correct price on the receipt, it was good enough. Customers would then be able to compare the prices they paid with what they expected to pay.
Class-action suit against Walmart
The lawsuit, filed by Yoran Kahn, claims shelf prices differ by 10 to 15% from the prices charged at the register. His attorneys claim that the Illinois branch isn’t the only culprit.
Similar discrepancies were found in Walmart stores across multiple states.
Why does this matter? Retail pricing accuracy is an ongoing concern. The court case could have significant implications for consumer trust and corporate accountability.
Previous dismissal overturned
The US Appeals Court’s decision overturns the previous district court’s dismissal.
It says merely expecting Walmart to provide a receipt with the true prices was insufficient to dispel the deception created inaccurate shelf prices.” Thus, Walmart would need to take more proactive steps to ensure pricing accuracy.
The appeals court also took issue with the scale of the problem.
According to the Food Industry Network, the court says that Walmart, as the nation’s largest retailer, “allegedly stands to profit by hundreds of millions each year from shelf price discrepancies.”
Walmart’s response
A company spokesperson tells Supermarket News that the retail giant will continue to fight the lawsuit. “We’ll always work to provide our customers every day [with] low prices they can count on.”
Walmart says it is “confident in the evidence and looks forward to arguing our case.”
The court acknowledges that maintaining 100% price accuracy is unrealistic, especially since Walmart’s supply chain includes a vast number of items. The issue lies with Walmart’s supposed inadequate measures to ensure price accuracy.
Walmart’s track record attests to this. The appeals court cites instances where Walmart had been fined in the past for scanning errors – specifically in California and North Carolina.
These fines could complicate matters for the retail giant.
Historical context: Previous dismissal
It’s worth noting that this is not the first time Kahn has brought this issue to court. In March 2023, a district court dismissed a similar complaint from Kahn.
At the time, Judge Sara L. Ellis ruled in favor of Walmart providing a receipt as sufficient steps for customers to compare scanned prices with shelf prices.
Judge Ellis also found that Kahn failed to adequately allege Walmart’s intent to deceive.
However, the recent appeals court decision suggests a shift in how the judiciary views these pricing discrepancies.
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About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
