Walmart Faces Class Action Lawsuit in Illinois for Misleading and Unfair Pricing

By Trisha Andrada

Jul 05, 2024 07:04 AM EDT

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Walmart faces a class action lawsuit alleging misleading and unjust pricing by charging customers more than required. (Photo : Scott Olson / Staff)

Walmart is in the crosshairs of a class action lawsuit that claims it engaged in deceptive and unfair pricing practices by charging consumers more than necessary.

Unfair and Deceptive Pricing

In a report by Fox Business, plaintiff Yoram Kahn claimed that the retail giant engages in unfair and deceptive pricing practices, taking advantage of customers in Illinois and throughout the country. The pricing differences may not seem like much, but according to him, they add up to hundreds of millions of dollars annually.

During his shopping trip on August 2, 2022, in Niles, Illinois, Kahn claimed to have relied on the listed pricing at the Walmart store. However, when checking out, he was met with a substantial overcharge.

The Illinois court determined that the six things Kahn purchased had 10-15% more markups than the shelf pricing.

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Consumer Protection Laws

According to the 7th US Circuit Court of Appeals in Chicago, customers still have a chance to show that Walmart violated Illinois' consumer protection laws by using a deceptive "bait-and-switch" strategy.

Walmart was said to have violated the Consumer Fraud and Deceptive Business Practices Act, the Illinois Uniform Deceptive Trade Practices Act, and other consumer protection legislation.

Meanwhile, Walmart argued that offering receipts after purchases would eliminate any injustice caused by erroneous shelf pricing, but the court disagreed.

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