Home Depot sued for $5 million over claims it exaggerated discounts on its website – are YOU in line for a payout?
- The lawsuit seeks $5 million on behalf of affected consumers
- Home Depot accused of artificially inflating the ‘original price’ of products
- In practice, discounts appear to be generous and mislead customers, claimants say
Home Depot has been hit with a class action lawsuit over claims that it exaggerated discounts on certain products by artificially inflating the original price.
Court documents seen by DailyMail.com are several examples of products, including refrigerators, microwaves and dishwashers, with an allegedly false ‘original price’.
Shoppers Eric Berger and Jason Londrigan, both from Texas, have now filed a case against the company in federal court in Georgia.
They are seeking $5 million, which would be distributed to consumers duped by the apparent discounts.
Retailers often come under fire for so-called ‘false reference pricing’, where they inflate the original price to make a discount seem more generous.
Home Depot has been hit with a class action lawsuit over claims that it exaggerated discounts on certain products by artificially inflating the original price
The plaintiffs tracked the advertised cost of a stainless steel Whirlpool microwave for two months, during which time it was never listed at its so-called “original price.” Different colors indicate when the price has changed. It was never sold for its original price
Berger and Londrigan tracked the advertised costs of certain products and discovered that many products had not been listed at their “original” price for more than three months.
The lawsuit claims that some products were “never sold at their original price” – which is not the case
In one example, they mention a stainless steel microwave from Whirlpool, which has an original price of $399.
But the lawsuit claims the price was actually listed at the discounted price of $198 for all four weeks of November in 2023 and the first week of December.
It then rose to $228 on December 12 and 19 before reaching $359 the day after Christmas.
Customers who bought it at the end of the month were therefore under the impression that they were getting a good deal, when in reality the product had been about $160 cheaper a few weeks earlier.
The product is currently available on the Home Depot website for $198 and still has the ‘original price’ listed as $399.
The lawsuit alleges, “This conduct artificially increases demand for deceptively priced products and induces customers to pay more based on a false impression of their value.
“Falsely referenced pricing schemes allow retailers like Home Depot to sell products above their true market price and value – to the detriment of consumers.”
The microwave is currently available on the Home Depot website for $198 and still has the ‘original price’ listed as $399
It alleges that the company is violating both federal and Georgia state law, including Georgia’s Fair Business Practices Act.
Home Depot has 2,000 physical stores in North America and generated $1.53 billion in sales in 2022.
About 14 percent of that comes through the website, according to the class action.
The court papers have only been filed and no date has been set for a hearing. It could take months or even years for the case to be resolved – and payouts will be issued if Home Depot loses.
DailyMail.com contacted Home Depot for comment.