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Walmart faces lawsuit alleging it measures prices at cash registers

Walmart faces lawsuit alleging it measures prices at cash registers

Walmart faces lawsuit alleging it measures prices at cash registers

Walmart is facing a class-action lawsuit that ruled the retailer overcharged customers with “deceptive and unfair pricing practices.”

Plaintiff Yoram Kahn alleged that the world’s largest retailer “takes advantage of consumers in Illinois and across the country with deceptive and unfair pricing practices.”

Kahn argued that while the price discrepancies were small, they “add up to hundreds of millions of dollars each year.”

“Kahn alleges that Walmart is aware of these discrepancies between shelf prices and prices at the checkout counter and that its unfair and deceptive pricing practices are widespread and ongoing,” he said.

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Walmart logo

Walmart has historically worked with celebrities to create their own affordable lines. (Robyn Beck/AFP/Getty Images)

Kahn alleged that he made purchases at a Walmart store in Niles, Illinois, on August 2, 2022, and relied on the marked prices but received a significant markup when he made the purchase.

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“When Kahn made the payment, the actual prices of these six items were marked up by between ten and fifteen percent over the prices on the shelves,” the court ruled.

“In total, Kahn paid Walmart $1.89 in surcharges for these six items, almost seven percent of his total pre-tax bill,” they said. “This is certainly a small amount for Kahn as an individual, but one that has to be taken into account for Walmart’s volume of business.”

On Wednesday, the 7th U.S. Circuit Court of Appeals in Chicago reversed a trial judge’s decision and ruled that consumers could try to show that Walmart used a fraudulent “bait-and-switch” method that violated state consumer protection laws.

The plaintiff alleged that Walmart violated the Illinois Consumer Fraud and Deceptive Trade Practices Act, the Illinois Uniform Deceptive Trade Practices Act, and other states’ consumer protection statutes.

Self-checkout machines at Walmart

Self-service checkout, Walmart megastore, North Carolina. (Lindsey Nicholson/UCG/Universal Images Group via Getty Images / Getty Images)

The court also disagreed with Walmart’s argument that providing receipts after purchases negated any unfairness caused by inaccurate shelf prices.

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Walmart, based in Bentonville, Arkansas, did not immediately respond to Fox News Digital’s request for comment.