CVS Agrees to $2M Settlement in Customer Overcharging Lawsuit
CVS Pharmacy has agreed to pay more than $2 million to settle a lawsuit alleging it overcharged customers and engaged in misleading advertising, according to an announcement by the Los Angeles County District Attorney's Office, the Pasadena Star-News the reports (Pasadena Star-News, 8/19).
The retail pharmacy chain admitted no wrongdoing or liability in the agreement, according to a company statement (Foxman, Ventura County Star, 8/19).
Details of the Lawsuit
The lawsuit -- filed by the district attorneys of Los Angeles, Riverside and Ventura counties -- alleged that CVS charged customers more than the advertised sale price for some items (Pasadena Star-News, 8/19).
The lawsuit also alleged that the company failed to provide immediate discounts that were advertised, according to the Ventura County District Attorney's Office. Prosecutors said an investigation found that beginning in 2006, charges were routinely higher than advertised sale prices (Chang, Los Angeles Times, 8/20).
Linda Groberg, a senior deputy district attorney, said CVS will pay $300,000 to California's Division of Measurement Standards and $100,000 to the ITT Consumer Protection Trust Fund toward enforcement of consumer protection laws.
CVS also has agreed to pay:
- $1.2 million in civil penalties to be split between Los Angeles, Riverside and Ventura counties (Ventura County Star, 8/19); and
- $420,000 in investigative costs (Los Angeles Times, 8/20).
In addition, CVS will implement a "scan-right" program that will give consumers up to $2 off if an item scans at a higher price than advertised (Pasadena Star-News, 8/19).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.