Shasta County District Attorney’s Office announced today that it has settled a civil enforcement lawsuit for nearly $1 million against Kohl’s Corporation (“Kohl’s”). The matter was a joint prosecution effort by the District Attorney’s Offices of Shasta, Santa Cruz, Fresno, and Riverside counties.
The case arose due to scanner/price inspections by multiple county Weights & Measures units, including the Shasta County Department of Weights & Measures. These inspections revealed numerous occasions where the price charged at the cash register at Kohl’s stores was not the lowest advertised or the posted price. The filed complaint alleges that Kohl’s violated the law by charging customers a higher price than the prices advertised on store shelves and signs. The complaint also alleges that material disclosures relating to the “Kohl’s Cash” program were not adequately made by Kohl’s.
Kohl’s cooperated with inspectors and the DA’s Offices during the investigation. Without admitting wrongdoing, Kohl’s then consented to an Entry of Judgment that includes injunctive provisions to ensure future compliance. As part of the judgment, Kohl’s is also required to pay civil penalties, costs of investigation, and restitution in an amount totaling $958,686.27.
The terms of the judgment require Kohl’s to institute enhanced policies and procedures in its stores to improve pricing accuracy. As to its “Kohl’s Cash” program, Kohl’s will be required to display signage at the register which provides how “Kohl’s Cash” is applied when combined with other percent-off discounts. Material disclosures regarding the application of “Kohl’s Cash” are also required to be displayed in a manner that is clear on all Kohl’s printed advertising.
The settlement money will be split between the four DA’s Offices that brought the action and the Weights & Measures departments that helped in the investigation. The DA’s Offices will use their shares to fund consumer protection activities and the Weights & Measures departments will recoup their respective agency’s costs incurred for their investigation.
The matter was handled for Shasta County by Deputy District Attorney Anand “Lucky” Jesrani, who said, “Our Consumer Protection Unit pursues these types of cases to ensure customers are charged the correct price, and not unfairly overcharged, when they pay at the register.”
Consumers in Shasta County who believe they are a victim of a price overcharge may contact either the Shasta County DA’s Office Consumer Protection Unit at 530-245-6300 or the Shasta County Department of Weights & Measures at 530-224-4949.
