Wal-Mart Stores Inc. will pay $820,000 to two California counties and San Diego in response to consumer protection action taken against them.
Tulare and Yolo counties and the city of San Diego filed suit against the retailer alleging Wal-Mart failed to provide warranty documents required by law and made misleading statements to consumers about its no-cost treadwear warranty on Goodyear Wrangler tires. According to the complaint, Wal-Mart employees at various times falsely claimed that:
• Wal-Mart would not honor the tread-wear warranty;
• Goodyear would honor it;
• Wal-Mart would assume responsibility for the warranty for Goodyear if an additional road-hazard warranty was purchased from Wal-Mart at $10 per tire; and
• The tread-wear warranty was unavailable without the road-hazard counterpart.
Wal-Mart made no admission of wrongdoing, according to a press release from county prosecutors. As part of a stipulated judgment, however, the retail giant agreed to teach its employees at its auto care centers about the material terms of its tire warranties including the identity of the warrantor.
The judgment includes $685,000 in civil penalties divided between the counties and San Diego. Additionally, Wal-Mart will pay $85,0000 in restitution to two statewide funds; $50,000 to the Tire Recycling Management Fund and $35,000 to the Consumer Protection Prosecution Trust Fund.
Wal-Mart will also pay out fees associated with the prosecution’s investigation.
