The Consumer and Environmental Protection Unit of the Ventura County District Attorney's office has filed and settled a civil action against Lowe's and Home Depot.

Between December 2003 and March 2007, Lowe's sold 422 water heater installations and collected related permit fees at its stores in Simi Valley and Ventura. Of these installations, 86 were performed without pulling permits that had been paid for.

In 104 of 422 installations, Lowe's collected amounts higher than the fees changed by the permitting agency where the unit was to be installed. Overcharges ranged from $1 to $40.50.

Between January 2003 and June 2007, Home Depot sold 3,492 water heater installations and collected related permit fees ranging from $14 to $71 per installation at stores in Camarillo, Simi Valley, Thousand Oaks and Oxnard. Fewer than 300 building permits were actually obtained using the collected funds. There was no evidence that these unpermitted installations caused harm to consumers or their property. Without admitting or denying liability, both Lowe's and Home Depot agreed to a permanent injunction requiring them to implement policies to ensure compliance with the law and prohibit violations of California's unlawful business practices law and of building codes that require permits.

Lowe's and Home Depot will acquire building permits for all customers who paid for permits but didn't receive them. If any of those installations don't pass inspection by building officials, the companies will have an authorized installer bring the installation into compliance at the applicable company's expense.

Lowe's will also refund overcharges to Ventura County consumers and pay $150,000 in civil penalties and investigative costs and for educational programs about the importance of complying with building permit and inspection requirements.

Home Depot will pay $415,320 in penalties and for educational programs.