Walgreens will pay $6 million to resolve a civil lawsuit filed by the Santa Clara County District Attorney’s Office and eight other prosecutor’s offices alleging that the giant drug store chain charged consumers more than the lowest advertised price for items and sold expired over-the-counter drugs.
DA investigators found that Walgreens sold expired over-the-counter drugs, such as aspirin, sunscreen, and hand sanitizer. The effectiveness of some over-the-counter medications may be reduced after the expiration date has passed.
District Attorney Jeff Rosen said the company cooperated with his investigation and quickly took steps to improve its compliance with the consumer protection laws brought to its attention by prosecutors.
This is Walgreens’ sixth judgment with California district attorneys involving charging consumers more than the lowest advertised price, and its second involving selling consumers expired over-the-counter drugs.
“Consumers trust that they are paying the right price for all items and that they are not buying expired over-the-counter drugs,” Rosen said. “The law and my office do not just trust that retailers are meeting those legal and common-sense consumer obligations. We will strictly enforce them.”
As part of the settlement, Walgreens agreed to create and enforce consumer protection policies, including extensive store audits of all stores in California and 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 $6, Walgreens will give you a $6 merchandise card. If the advertised price is $6 or less, you wil receive that item for free.”
The price guarantee does not apply to some products, such as alcohol.
Walgreens, one of the largest pharmacy retailers in the United States, operated approximately 580 stores in California and approximately 35 stores in Santa Clara County between 2018 and 2026, the period covered by the settlement.
The settlement, which was filed in Santa Clara County Superior Court, includes $5.4 million in civil penalties, and $600,000 in investigative costs. The case was brought by the Santa Clara County District Attorney’s Office and district attorney’s offices in Contra Costa, San Diego, San Mateo, San Bernardino, Santa Cruz, Yolo, San Joaquin and Alameda counties.
