Yolo County District Attorney Jeff Reisig announced Friday that Wal-Mart Stores Inc. will pay $820,000 to settle a consumer-protection action brought by prosecutors in the offices of the Yolo County District Attorney, the Tulare County District Attorney and the City Attorney of San Diego.
The legal action involved the sales of Goodyear automobile tires. Prosecutors alleged that Walmart employees falsely claimed the store would not honor the treadwear warranty but that Goodyear would, even though it was, in fact, a Walmart warranty.
Employees also claimed Walmart would assume responsibility for the treadwear warranty for Goodyear if an additional road-hazard warranty was purchased from Walmart at $10 per tire, even though the additional purchase was not required.
Walmart admitted no wrongdoing in the settlement. It fully cooperated in the investigation and has revised its practices to comply with applicable law, a news release said. As part of the stipulated judgment, Walmart agreed to train employees in its auto care centers about the material terms of its tire warranties, including the identity of the warrantor.
The judgment included $735,000 in civil penalties and prosecution costs, to be divided between the City Attorney of San Diego and the district attorney’s offices of Tulare and Yolo counties.
In addition, restitution of $85,000 will be paid to two statewide funds: $50,000 to the Tire Recycling Management Fund, which provides grants to clean up illegally disposed tires; and $35,000 to the Consumer Protection Prosecution Trust Fund, to aid in the prosecution of consumer protection cases.
Reisig praised the settlement.
“Warranties are a part of the representations made to consumers to induce them to purchase products and it is vital that consumers be able to rely on those representations should the need arise,” he said.
“We are gratified that Wal-Mart recognized the issue, cooperated with our prosecutors and changed its practices.”