Walgreens to pay $6 million to settle California lawsuit over scanned prices, expired products
By Carlos E. Castañeda
A lawsuit against Walgreens stores over alleged price-scanner and expired-product violations in California has resulted in the company agreeing to pay $6 million and to institute a new price guarantee to settle a lawsuit by multiple counties.
The lawsuit alleged that Illinois-based Walgreen Co. violated California law by charging customers more than the posted or advertised price, and selling baby food and over-the-counter drugs after their expiration dates.
The suit was led by the San Mateo County District Attorney’s Office and joined by the DAs from Alameda, Contra Costa, San Bernardino, San Diego, San Joaquin, Santa Clara, Santa Cruz and Yolo counties.
It was the latest in a series of civil actions Walgreen Co., the second-largest pharmacy chain in the U.S., involving overcharging customers or selling expired products. A 2018 judgment in a suit brought by Contra Costa, San Mateo, Santa Clara, and Santa Cruz counties for $2.25 million replaced a 2013 judgment against the store for similar violations.
Prosecutors said the modified stipulated final judgment announced Thursday supersedes the 2018 judgment and adds extra rules, compliance requirements, and financial penalties in response to the latest pricing and expired‑product violations.
The San Mateo County DA’s Office said it was Walgreens’ sixth judgment with California district attorneys involving overcharging consumers and the second involving selling consumers expired over-the-counter drugs.
“California law provides protections for consumers to ensure that the price they pay at the register is not greater than the advertised price, and to protect from being sold expired products containing drug facts,” said San Mateo County District Attorney Stephen Wagstaffe in a prepared statement. “My office was pleased to work with the District Attorney Offices in this case to ensure these laws were enforced.”
Without admitting wrongdoing, Walgreen Co. will pay $5.4 million in civil penalties and $600,000 in investigative costs, according to the announced settlement.
In addition, the company is required to create and enforce consumer protection policies, including audits of all stores in California, and post a scanner price guarantee that reads: “If an item scans at a higher price than the advertised price, and the advertised price is greater than six dollars ($6), Walgreens will give you a six dollar ($6) merchandise card. If the advertised price is six dollars ($6) or less, you will receive that item for free.”
Walgreen Co. has not responded to CBS News Bay Area’s request for a statement on the settlement as of Thursday afternoon. The company currently operates about 580 stores in California.
