Target Corp. pays $5 million to settle pricing lawsuit

MINNEAPOLIS (AP) — Target Corp. has agreed to pay $5 million to settle a California lawsuit alleging the retail chain changed prices on its mobile app after customers entered stores and charged them more than advertised.

The Minneapolis Star Tribune reported Friday that the San Diego County District Attorney’s Office filed the lawsuit in February. The settlement was announced last month.

The lawsuit alleged that Target used a technology known as “geofencing” that enables businesses to identify customers’ locations and make their apps adapt to that location. The retailer didn’t clearly disclose to customers where some items could be purchased for the advertised price, either online or in the store.

The settlement prohibits Target from using the technology to raise prices and requires Target to clearly display on the app where a customer can find the item for the advertised price. Target stores in California must implement audit and price accuracy checks for seven years.

Target officials said most of the issues in California occurred because promotional signs weren’t removed immediately after the promotion ended.

Target paid $7.4 million in 2018 to settle another lawsuit brought by San Diego prosecutors. That filing alleged the retailer violated California laws governing the disposal of hazardous waste.