Walgreens Ordered To Pay Six Million Dollars For Business Code Violations

From the Office of the District Attorney:

Martinez, California – Contra Costa District Attorney Diana Becton and other District Attorneys in the
State of California reached a settlement with Walgreen Co. for six million dollars for violations related to
expired baby food, drugs, and overcharging customers.

The civil case and settlement centered on the company violating state law by charging their customers
more than the lowest price posted or advertised price. The allegations that the company was in violation
of these laws were based on inspections of scanners. Moreover, the civil lawsuit led to a resolution that
Walgreens failed to comply with laws that prohibit the selling or offering to sell over-the-counter drugs,
infant formula, and baby food products beyond the expiration date.

The court ordered Walgreen Co. to pay 5.4 million dollars in civil penalties and $600,000 to reimburse
state district attorney offices for the cost of investigations, attorneys’ fees, and other costs associated with
enforcement. Contra Costa County will receive $612,000 of the civil settlement and $10,000 to cover the
costs.

Walgreen Co. will also implement a three-year program to promote pricing accuracy and the removal of
expired products from its store shelves. This program requires store managers to conduct monthly checks
of all aisles and shelves of medication, baby food, and formula, and remove any expired items. Managers
must also conduct weekly store walks and remove signage displaying inaccurate sales tag information and
post signs informing customers of Walgreens’ Price Promise Guarantee. The Price Promise Guarantee
means that if a customer notices a scanned price is higher than the advertised price, the customer will be
charged the lower price.