Walmart To Pay $5.6 Million In Settlement For Overcharging Customers, Violating California Laws

Walmart Inc. WMT has agreed to pay a hefty sum of $5.6 million to settle a lawsuit accusing the retail giant of overcharging its customers and selling products with less weight than labeled.

Walmart Sued For Overcharging, False Advertising Claims

The lawsuit, filed by four California counties, alleges that Walmart overcharged customers and sold products, including produce, baked goods, and other prepared items, with less weight than indicated on the label, reported USA Today.

Check out the current price of WMT stock here.

The Santa Clara County District Attorney's Office in California alleged that Walmart illegally charged customers more than the lowest advertised or posted prices, actions that reportedly violate the state's False Advertising and Unfair Competition Laws.

The District Attorney’s office maintained that these actions by Walmart contravene California's False Advertising and Unfair Competition Laws. District Attorney Jeff Rosen emphasized, “When someone brings an item to the register to be scanned, the price must be right.”

Walmart has faced similar accusations before; in 2012, it paid $2.1 million for overcharging customers, violating a 2008 court ruling.

Walmart Faces New Lawsuit Amid Growth Strategy Shift

This latest lawsuit adds to a series of legal challenges that Walmart has faced recently. In July 2025, the Trump Organization sued Walmart along with other online sellers for allegedly marketing counterfeit Trump-branded products.

These legal issues come at a time when Walmart is seeking to maintain its revenue growth amid macroeconomic concerns and tariffs. In June 2025, the company was reportedly exploring new strategies, such as the introduction of ‘dark stores’, to support its growth.

According to Benzinga Edge Stock Rankings, Walmart has a growth score of 84.61% and a momentum rating of 82.80%. Click here to see how it compares to other leading retail companies.

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