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Walmart to Pay $5.6 Million for Overcharging Customers and Violating California Laws
ByAinvest
Tuesday, Aug 12, 2025 5:34 pm ET1min read
Walmart has agreed to pay $5.6 million to settle a lawsuit accusing the retail giant of overcharging customers and selling products with less weight than labeled. The lawsuit, filed by four California counties, alleges that Walmart violated California's False Advertising and Unfair Competition Laws. This latest lawsuit adds to a series of legal challenges that Walmart has faced recently, including a lawsuit filed by the Trump Organization for allegedly marketing counterfeit Trump-branded products.
Walmart Inc. (NYSE: WMT) has agreed to pay $5.6 million to settle a lawsuit accusing the retail giant of overcharging customers and selling products with less weight than labeled. The lawsuit, filed by four California counties, alleges that Walmart violated California's False Advertising and Unfair Competition Laws [1].The civil complaint, filed by district attorney's offices including Santa Clara County, alleged that Walmart overcharged customers and sold products, such as produce, baked goods, and other prepared items, with less weight than indicated on the label. These actions reportedly violate California's False Advertising and Unfair Competition Laws [2].
Walmart operates 280 stores in California, including 10 in Santa Clara County. The court ordered Walmart to pay $5.5 million in civil penalties for the violations in this case, and to maintain employees who will be responsible for price and weight accuracy in California stores. Walmart will also pay $139,908.92 to cover the costs of the investigations conducted by various Weights and Measures departments in the state [3].
This settlement comes amidst a series of legal challenges Walmart has faced recently. In July 2025, the Trump Organization sued Walmart along with other online sellers for allegedly marketing counterfeit Trump-branded products [4].
Walmart's latest legal troubles follow a $2.1 million settlement in 2012 for similar issues, where the company was found to have overcharged consumers in violation of a 2008 judgment against the retail chain [1].
References:
[1] https://da.santaclaracounty.gov/walmart-overcharged-customers-will-pay-56-million-settle-consumer-protection-lawsuit
[2] https://finance.yahoo.com/news/walmart-pay-5-6-million-213106864.html
[3] https://kicks105.com/ixp/204/p/consumer-protection-walmart-lawsuit/
[4] https://www.hindustantimes.com/world-news/us-news/walmart-to-pay-5-6m-to-settle-lawsuit-accusing-company-of-overcharging-california-shoppers-what-to-know-101754890247096.html
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