By Lorna Brett

Sears and Kmart have reached a settlement that will see the retailers fork out $US1.1 million over allegations of engaging in dishonest business practices, according to the Los Angeles County District Attorney's Office.

The retailers were charged for making consumers pay a higher price for items that were advertised for a lesser amount, as well as placing unlawful prices on certain beverage containers.

The companies agreed to pay civil liberties and legal costs incurred by prosecutors and investigations without admitting liabilities, according to www.tradingmarkets.com.

The retailers have also agreed to cease making false or misleading statements to consumers in regards to the price of items advertised for sale. In addition to this, they must also maintain compliance programs for the next three years to improve pricing accuracy and stop pricing errors as well as conduct in-store audits no less than once a week. The District Attorney's Office also said the retailers will be subject to independent third-party audits at least once a year.

"A company that engages in deceptive advertising to bait consumers or deliberately overcharges customers will be sued to assure compliance with the law," District Attorney Steve Cooley said.