Kohl's Agrees to Six-Figure Payout for Alleged Violations

Photo credit: Albert Herring/Wiki Commons

By City News Service

Kohl’s Department Stores Inc. will pay Riverside County $224,000 under a settlement stemming from a lawsuit alleging instances of false advertising and other violations by the nationwide chain, it was announced Friday.

Riverside, Fresno, Santa Cruz and Shasta counties initiated a joint civil action against the retailer following investigations that determined the chain had allegedly been charging prices higher than those posted on shelves and other signage, and failed to fully disclose how the “Kohl’s Cash” discount program worked.

Under an agreement signed by Santa Cruz County Superior Court Judge Marjorie Carter on Thursday, Kohl’s admitted no wrongdoing but agreed to institute changes to bring stores into compliance, and pay a total of $958,686 toward civil penalties and reimbursement to the counties for investigative and related expenses.

According to the Riverside County District Attorney’s Office, visits to area Kohl’s stores revealed multiple occasions in which the checkout prices were higher than those posted for products. The county’s Weights & Measures Division identified overcharges during inspections of checkout scanners, prosecutors said.

The D.A.’s office also alleged that the Kohl’s Cash program lacked transparency. Under the program, in-store purchases above certain amounts, typically $50, qualify for cash-back redemptions, according to the Kohl’s website. Cash-back coupons are generally $10 in value.

Prosecutors said the store did not make clear how various percent-off discounts applied in conjunction with Kohl’s Cash. The settlement agreement stipulates that the company will revise policies to remove uncertainties for the benefit of customers.

The $224,000 that the Riverside County D.A.’s office will receive under the settlement will be applied to future “consumer protection activities,” according to agency spokesman John Hall. He said the county’s Weights & Measures Division will get $4,718 for its part.

There are a dozen Kohl’s stores countywide.