Summary:

• Walmart faces a lawsuit alleging it overcharges customers at checkout compared to advertised shelf prices, ruled by the 7th Circuit Court of Appeals, allowing consumers to proceed with claims of deceptive practices.

Walmart is set to face a lawsuit alleging that it routinely overcharges customers at checkout compared to prices displayed on store shelves, potentially costing consumers hundreds of millions annually, according to a recent ruling by the 7th US Circuit Court of Appeals in Chicago. This decision overturns a previous ruling and allows consumers to pursue claims that Walmart’s actions constitute deceptive “bait-and-switch” tactics, violating consumer protection laws in multiple states, as reported by Reuters.

The appeals court rejected Walmart’s defense that providing receipts after purchases mitigates any harm caused by inaccurate shelf prices. Circuit Judge David Hamilton, writing for the panel, emphasized that consumers reasonably expect to be charged the prices visibly advertised on shelves, calling such expectations neither unreasonable nor implausible.

The lawsuit, spearheaded by plaintiff Yoram Kahn of Cleveland, asserts discrepancies between advertised and charged prices across several states, including Florida, Illinois, Indiana, Maryland, New Jersey, New York, and North Carolina, even after regulatory penalties in 2022 for price-scanning errors in North Carolina.

While many discrepancies were minor—such as a New Jersey Walmart charging $3.64 for Crisco Pure Canola Oil versus the posted $3.12, or $2.48 for Hershey’s Chocolate Syrup versus $2.33—the cumulative impact on consumers was significant, according to consumer lawyers.

Judge Hamilton underscored the impracticality of expecting consumers to meticulously track and verify shelf prices during checkout, given potential distractions like children, media headlines, or the logistics of payment and bagging purchases.

The case now returns to US District Judge Sara Ellis in Chicago for further proceedings, following the appeals court’s decision to reverse the dismissal of the lawsuit in March 2023.

Lawyer Stanley Bernstein, representing the plaintiffs, expressed satisfaction with the ruling, anticipating a validation of Walmart customers’ rights in the ongoing litigation.

The case is titled Kahn v Walmart Inc, 7th US Circuit Court of Appeals, No. 23-1751.