Price-Gouging At Walgreens Stores Leads To Alameda County Settlement

BERKELEY, CA — Alameda County is one of nine locales slated to receive over half a million dollars in a settlement linked to a price-gouging investigation involving one of the nation’s largest pharmacy chains.

A coalition of district attorneys across nine California counties secured a $6 million settlement with Walgreens after investigators found the company violated consumer protection laws tied to pricing accuracy and product safety.

California prosecutors say a routine set of inspections exposed a troubling pattern inside Walgreens drug stores—charging customers for too much and leaving expired products on shelves.

Prosecutors built the case on scanner inspections that showed Walgreens stores charged customers more than the lowest advertised or posted price, according to an announcement from the Contra Costa County District Attorney's office.

Investigators also documented instances where stores offered over-the-counter drugs, infant formula, and baby food for sale after their expiration dates—violations that carry serious risks for consumers, especially families with young children, the D.A.'s office said.

A court ordered Walgreens to pay $5.4 million in civil penalties and an additional $600,000 to reimburse district attorney offices or investigative and legal costs.

Each of the nine counties — from Alameda to Yolo County — will receive a share of the settlement.

The agreement also forces operational changes inside Walgreens stores. The company must implement a three-year compliance program that requires managers to conduct monthly inspections of shelves stocked with medications, baby food, and formula to remove expired items, according to the D.A.'s office.

Managers must also perform weekly store walks to correct inaccurate sales tags and post signage explaining the company’s “Price Promise Guarantee,” which ensures customers pay the lowest advertised price if discrepancies arise at checkout.

Contra Costa County District Attorney Diana Becton said the case underscores a broader principle: companies that sell essential goods must protect public trust by ensuring accuracy and safety at every level.

"Customers should have confidence that companies that sell food and formula to infants and children are doing so by being scrupulous about the safety of the products in their stores," Becton said.

"The same goes for medications that are sold beyond their expiration dates. The work of my office and those of other district attorney offices in the state shows that when we work together to enforce laws, we not only ensure compliance – we’re also restoring trust and safety in our communities.”

The suit was led by the San Mateo County District Attorney's Office and joined by district attorneys in Alameda, Contra Costa, San Bernardino, San Diego, San Joaquin, Santa Clara, Santa Cruz and Yolo counties.

“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. My office was pleased to work with the District Attorney's Office in this case to ensure these laws were enforced,” San Mateo District Attorney Stephen Wagstaffe said.

During the time period covered by this settlement, Walgreens operated approximately 580 stores in California.