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.
The Minneapolis Star Tribune reports 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.