Home Depot Class Action Lawsuit


Class Action Plaintiffs: Andrea Spiegler
Class Action Defendants: Home Depot U.S.A., Inc., The Home Depot Inc., Expo Design Center
Class Action Case Number: BC372371

Class Action Allegations: This class action is against Home Depot, one the largest home improvement retailers in the United States, seeking relief on behalf of a class of consumers who were overcharged for products and services they sold. Among the services they provide is the sale and installation of a variety of products such as carpeting, flooring, cabinets, countertops, shutters, windows, decks, fencing, roofs and siding.

The typical process by which these services are rendered start with an initial inquiry by a customer, followed by a home visit by the Defendants’ employee. During the home visit, the employee assess the customer’s needs by suggesting the appropriate products and materials, and by taking measurements in order to, ostensibly, requisition the correct amount of product and provide a proper Contract Sales Price for the products and Installation Services.

Shortly after a contract is signed, Home Depot dispatches another employee, known as a Measurement Technician, to the customer’s home. The Measure Tech’s purpose is to verify and correct the measurements taken by the Professional, ostensibly to ensure that the proper type and amount of product and materials are being ordered prior to commencement of the installation process. Based upon the data provided by the Measure Tech, Home Depot internally generates a new retail sales price, known as the "Target/Actual Selling Price" that reflects the actual retail sales price of the products, materials and labor that, as determined by the Measure Tech, are actually necessary to complete the contracted for Installation Services.

The customer always pays the Contract Selling Price, even when the Target/Actual Selling Price is less. The customer is never shown or told about the Target/Actual Selling Price.

In order to avoid shortages, Professionals are instructed to, and routinely do, over measure the customers’ need for product and materials. The typical result is that the Contract Selling Price paid by the customer is greater than the Target/Actual Selling Price, thus resulting in a windfall for Home Depot at the expense of it's customers.

The Contract consists of general terms and conditions, an invoice and product specifications. It states that the work and specifications contained therein are the “exact” work to be performed. Any modifications require a signed change order. Despite having calculated the exact retail sales price for each installation, Home Depot fails to modify the Contract Selling Price or implement a change order. Instead, Home Depot routinely over-charge the customer for services, products and/or materials that are not actually necessary or provided. Home Depot does not inform customers of any difference between the Contract Selling Price and the Target/Actual Selling Price, nor do they refund such difference.

This practice was exposed by Joel Grover and Matt Goldberg of Channel 4 KNBC News.

If you believe that you have also been harmed because of Home Depot's actions, feel free to contact us to discuss a role in this class action.