An appellate court on July 3 reversed a lower court’s dismissal of a lawsuit alleging deceptive pricing practices by retailer Walmart. The case, brought by plaintiff Yoram Kahn on behalf of himself and similarly situated consumers, claims that Walmart has been engaging in unfair and deceptive pricing practices that mislead consumers at the point of sale. Specifically, Mr. Kahn alleged that the prices on the store shelves did not match the prices shoppers were charged at the register. Walmart argued that giving consumers receipts showing the prices they actually paid is sufficient.
The discrepancies amounted to nearly seven percent of his total bill, a small amount for an individual but potentially significant given Walmart’s volume of transactions. Mr. Kahn’s investigation revealed similar issues at other Walmart locations in Illinois, Florida, Indiana, Maryland, New Jersey, and New York. The lawsuit included a claim of unjust enrichment and seeks to represent a class of similarly affected consumers.
The district court originally dismissed the case in March 2023, finding that the plaintiff failed to allege a plausible claim under the state consumer protection laws because providing customers with a receipt showing the actual prices charged was sufficient to dispel any deception.
The appellate court focused on what constitutes reasonable consumer behavior under state consumer protection laws. In his opinion, Judge Hamilton noted that his reversal was not because he agreed with the plaintiffs. The court actually agreed with Walmart’s argument that the consumers had not alleged a plausible likelihood of future injury that is needed for injunctive relief under the UDTPA. However, Judge Hamilton is giving the plaintiff “an opportunity to amend his complaint if he believes he can cure that problem.”
The court further noted that expecting consumers to track and compare all shelf prices against their receipts was unreasonable. Judge Hamilton emphasized that providing a receipt post-purchase does not necessarily correct the deception caused by inaccurate shelf pricing. The Epoch Times has reached out to Walmart Inc. for a response to the lawsuit but did not hear back before publication time. Could you please provide a different version?
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