The L.A. District Attorney's office says an investigation revealed that Sears and Kmart charged more than their advertised prices.
The investigation also revealed that Kmart violated the California Beverage Container Recycling and Litter Reduction Act by charging more for California Redemption Value (CRV) beverage containers than allowed by law. Kmart also charged consumers the CRV fee for containers not covered under state law, A District Attorney spokesman said.
"These retailers are established, trusted household names. When consumers set foot in their stores, they have a reasonable expectation to receive fair and lawful prices," L.A. District Attorney Steve Cooley said.
Both companies agreed to the settlement without admitting liability, a district attorney spokesman said.