CVS Pharmacy Inc. agreed to pay $2.4 million to settle a consumer protection lawsuit alleging that customers were overcharged for purchases, Los Angeles County District Attorney Jackie Lacey announced Thursday.
The Rhode Island-based company — which has 232 CVS stores in Los Angeles County — did not admit any liability or wrongdoing under the settlement, which also requires the company to enhance a price-scanning accuracy program in its California stores.
“Today, we held CVS accountable to ensure that customers are charged the correct price at the cash register,” Lacey said.
Just over $2 million in civil penalties will be split between the District Attorney’s offices in Los Angeles, Riverside and Ventura counties, which filed the consumer protection lawsuit earlier this week. The remaining money is set to go toward investigative costs and a trust fund used to enforce consumer protection laws.
The complaint alleged that CVS engaged in misleading advertising by charging more than the advertised price and failed to give cash back on gift cards of less than $10 as required by state law.
The pharmacy store chain will augment its existing “Scan Right” guarantee program by keeping track of when customers are over-charged, according to the District Attorney’s Office.
The settlement, signed Wednesday by Los Angeles Superior Court Judge Elizabeth Allen White, also calls for CVS consumers to receive an item under $4 for free or to receive $4 off an items more than $4 if the item scans at a price higher than the shelf price or lowest advertised price, according to the District Attorney’s Office.
— City News Service