Settlement Reached in CVS Lawsuit

CVS Pharmacy Inc., which operates stores in the Coachella Valley and than 40 other locations in Riverside County, settled a $2 million consumer lawsuit alleging false advertising and price-scanning violations, prosecutors announced Friday.

The action was brought against CVS Pharmacy Inc. -- which does business as CVS/pharmacy -- by prosecutors from district attorney’s offices in Riverside, Ventura and Los Angeles counties, Riverside D.A. spokesman John Hall said in a statement.

"The civil complaint, filed in Los Angeles County, alleges that CVS violated the law through false and misleading advertising and unlawful and unfair business practices -- including charging an amount greater than the lowest advertised price, commonly referred to as 'scanning violations,'" Hall said.

The complaint also alleges CVS misrepresented discounts customers would receive when the earning of a discount was contingent upon a subsequent event, Hall said.

Without admitting wrongdoing or liability, the stipulation by CVS to the entry of Final Judgment and Permanent Injunction requires CVS to obey the law, institute a scanner accuracy program, and pay $1.2 million in civil penalties, Hall said.

CVS is also required to pay more than $420,000 in investigative costs, $300,000 restitution to the Division of Measurement Standards, and $100,000 restitution to the Consumer Protection Trust, which helps fund the enforcement of consumer protection laws, he said.

Mike DeAngelis, director of CVS Public Relations, confirmed the settlement in an email from Rhode Island.

"CVS/pharmacy has entered into a settlement agreement with the District Attorneys for Los Angeles, Riverside and Ventura Counties to resolve allegations that some prices scanned at the register during checkout did not match the advertised sale price," DeAngelis said.

"Under this agreement, we will guarantee up to $2 off if a customer is charged a higher price for a product than what is advertised," DeAngelis said. "Pursuant to the agreement, CVS/pharmacy worked cooperatively with the DA offices and did not admit any wrongdoing."

The case was brought to the attention of authorities by the California Division of Measurement Standards and county Weights and Measures officials, Hall said.

Riverside County District Attorney Paul E. Zellerbach announced entry of the judgment and injunction against CVS Pharmacy Inc. on Friday.

There are 45 CVS stores in Riverside County, including one on .

Consumers who believe they may have been overcharged by any company, including CVS, were urged to contact their local Weights and Measures office. Contact information and citizen complaint forms can be found at www.rivcoag.org