NEWARK—Duane Reade International Inc. ("Duane Reade") has agreed to pay a $175,000 civil penalty, plus reimburse the state $25,000 in investigative costs and attorneys' fees, as part of the settlement resolving a lawsuit filed last December regarding the sale of expired and/or mispriced non-prescription drugs, infant formula, baby food and other products at the company's New Jersey drug stores.

As part of the settlement, Duane Reade has agreed to not sell expired non–prescription drugs, infant formula, baby food and cosmetics, to check the expiration dates prior to displaying for sale and to arrange for the discard of any such expired merchandise. Duane Reade also has agreed to provide instruction and training to its store employees as to the identification and handling of expired merchandise. In addition, Duane Read has agreed not to sell merchandise at a price that exceeds the price at the point of display

If the company fails to meet the terms of the settlement over the next 12 months, it faces an additional $100,000 civil penalty. In entering into the settlement, Duane Reade made no admission of liability or wrongdoing.

"Manufacturers put expiration dates on their products for a reason and this agreement puts the onus on Duane Reade to ensure that no out–of–date products are available to consumers," Attorney General Anne Milgram said. "We will be monitoring the company to ensure Duane Reade abides by this agreement."

Under the settlement, Duane Reade has agreed to comply with the state's laws and regulations governing its business practices, including the Consumer Fraud Act, the Weights and Measures Act and the Refund Policy Disclosure Act.

"We appreciate the steps that Duane Reade has taken to ensure that its stores are in full compliance with New Jersey laws," said Larry DeMarzo, Acting Consumer Affairs Director. "Consumers have every right to expect that products purchased in New Jersey are safe, fresh and accurately priced and this agreement serves that purpose."

The state's lawsuit also alleged that Duane Reade violated a prior settlement entered in August 2006. Under that settlement, Duane Reade paid $50,000 and agreed to comply with the state's Consumer Fraud Act following allegations that it sold expired non-prescription drugs, infant formula and baby food.

Deputy Attorney General Jeffrey Koziar represented the state in this action.

###