Target to pay $5 million in penalties after lawsuit alleges customers were overcharged in app

SAN DIEGO (CNS) -- Target has agreed to pay $5 million in civil penalties to settle a lawsuit alleging the company was overcharging customers for some items and misled customers regarding prices featured on its app, the San Diego County District Attorney's Office announced Thursday.

The complaint filed by seven California District Attorney's offices, including San Diego County, alleged Target charged prices higher than the company's lowest advertised price. Prosecutors also alleged the Target app advertised different prices on its app once a customer entered a Target store's perimeter.

If the app advertised a different price for an item than the one available in store, customers were not informed where to purchase the item for the advertised price, the complaint alleged.

"With this latest lawsuit, we're continuing to protect consumers and their hard-earned money, as well as ensuring that Target is held responsible when it violates the law,'' San Diego County District Attorney Summer Stephan Said.

The judgment in the case includes an injunction prohibiting Target from charging an amount greater than the lowest price posted for an item, and prohibits it from changing prices on its app based on the user's geographic location. When online and store prices differ, Target must disclose where the item can be obtained for the price advertised on the app, according to the judgment.

The DA's Office said Target was cooperative during the investigation and has since instituted new policies and procedures aimed at improving pricing accuracy.