Home Depot Pricing Lawsuit Claims Retailer Posts Fake Discounts Online

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action lawsuit alleges Home Depot advertises fake or outdated “original” prices on its website for certain items that are listed at a significantly lower price, leading consumers to mistakenly believe they are getting a deal. 

Want to stay in the loop on class actions that matter to you? Sign up for ClassAction.org’s free weekly newsletter here. 

The 22-page Home Depot lawsuit claims the “artificial price disparity” touted by the retailer on TheHomeDepot.com misleads consumers into believing that a product has a higher market value than the price being offered, which thereby induces shoppers to make purchases under the guise of a “bargain.” This, in turn, artificially increases demand for the products “deceptively priced” by Home Depot, the filing explains. 

“False-reference pricing schemes thereby enable retailers like Home Depot to sell products above their true market price and value—to the detriment of consumers,” the case summarizes, noting that Georgia and federal law “specifically prohibit this type of false advertising.” 

According to the suit, some products on HomeDepot.com advertised at a discounted price “for many months on end” had not been available to buy at this purported original price for more than three months, and in many cases had never been offered at the stated original price. The case accuses Home Depot of taking advantage of consumers’ lack of fundamental information about certain products, which often leads them to rely on the retailer for material facts before making a purchasing decision.

“Home Depot has engaged in a massive consumer-deception campaign through its use of false-reference pricing practices, to the detriment of the Plaintiffs and the proposed class,” the filing alleges. 

The ostensibly “discounted” price touted by Home Depot online is displayed on the webpage in black, with the original price displayed to the right, crossed out and in a small font, the suit shares. The “total savings” for a potential buyer appears below the crossed-out original price, in green, the case says.

However, the lawsuit states that investigation has revealed that Home Depot has advertised a number of products with misleadingly crossed-out false reference prices for months at a time.

“Numerous products were never sold at their purported original price—while others were listed at false-reference ‘discount’ prices for many months on end,” the suit claims. 

The Home Depot lawsuit looks to cover all persons who, within the applicable statute of limitations period, bought from TheHomeDepot.com one or more products at a discount from an advertised reference price and who have not received a refund or credit for their purchases. 

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s free weekly newsletter here.