Price-Gouging Settlement At SMC Walgreens Stores

SAN MATEO COUNTY, CA — San Mateo County will receive more than half a million dollars from a settlement linked to a price-gouging and infant formula investigation involving one of the nation’s largest pharmacy chains.

San Mateo County District Attorney Stephen Wagstaffe and a coalition of prosecutors 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 from 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 San Mateo 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 for 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.

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 Offices in this case to ensure these laws were enforced,” Wagstaffe said.

During the time period covered by this settlement, Walgreens operated approximately 580 stores in California and 15 in San Mateo County.

This action follows a prior 2018 settlement with Walgreens for similar violations.

The new settlement replaces the 2018 judgment by adding new injunctive, compliance and civil penalty and costs provisions to address the new pricing and expired product violations, according to the D.A.'s office. Walgreens did not admit wrongdoing in either case.

Walgreens cooperated with prosecutors during the investigation and the resolution of this case, Wagstaffe's office said.

San Mateo County Walgreens locations:

• San Mateo
• Burlingame
• Millbrae
• San Carlos
• South San Francisco
• Daly City
• Pacifica
• Menlo Park