LOS ANGELES—According to a press release from the Los Angeles District Attorney’s Office, CVS Pharmacy, Inc. has agreed to assign two executives who will be responsible for pricing issues in Southern and Northern California under a May 2015 settlement for allegedly overcharging customers at checkout. The Rhode Island-based company agreed to pay an additional $551,687 as part of the judgment approved on December 20, 2017 by Los Angeles Superior Court Judge Elizabeth Allen White.
CVS pharmacy reached a $2.4 million settlement in 2015 for allegedly allowing inaccurate advertising by charging more than the advertised price for products and failing to give cash back on gift cards less than $10 as required by state law.
The modification to that settlement resulted from new violations discovered by county weights and measures agencies and continuing problems with price accuracy. The judgment added a $485,000 civil penalty that will be equally distributed among the prosecuting agencies in the new matter – the Los Angeles, Riverside and Santa Cruz county district attorney’s offices.
The remaining funds will go toward investigative costs and a trust fund used to enforce consumer protection laws.
Under the original settlement, CVS was required to augment its “Scan Right” guarantee program by keeping track of when customers are overcharged. If an item scans at a price higher than the shelf or lowest-advertised price, the company gives the item for free if the price is $4 or under or $4 is deducted from the lowest-advertised price if an item is more than $4.
The case was handled in Los Angeles County by Deputy District Attorney Leonard Torrealba of the Consumer Protection Division. Any consumer who suspects they were overcharged by any company, including CVS, are encouraged to contact their county weights and measures agency. In Los Angeles County, go to: http://acwm.lacounty.gov.