Alleged Actions Violate 2006 Settlement with New Jersey

NEWARK — Attorney General Stuart Rabner and the Division of Consumer Affairs have filed suit against Duane Reade International, Inc., alleging that the company violated state laws by selling expired and mispriced products to the public, including non-prescription drugs, infant formula, baby food, and other health and beauty products.

The alleged actions committed by Duane Reade violate terms of a settlement between the state and Duane Reade reached this August. Under the settlement, Duane Reade paid $50,000 and agreed to comply with the state's Consumer Fraud Act (CFA) and other applicable laws. The settlement concluded an investigation into alleged sales of expired and mispriced products.

"Duane Reade has failed to live up to the terms of its settlement agreement with the state and has again violated the public trust," Attorney General Rabner said. "We are seeking maximum penalties against Duane Reade and actions — not just words — that demonstrate the company's commitment to reforming its business practices to comply with state laws."

The state's six-count complaint, filed in State Superior Court in Bergen County, follows inspections of Duane Reade stores in October. The company allegedly:

• Violated the CFA by selling expired merchandise;
• Committed unconscionable commercial practices by selling expired merchandise;
• Committed unconscionable commercial practices by selling merchandise at a price in excess of the posted price;
• Violated the Weights and Measures Act by improper price scanning;
• Violated the CFA by failing to post a refund policy; and
• Violated the August 2006 settlement.

"The ink is barely dry on their agreement to stop selling expired infant formula, baby food and non–prescription drugs to consumers," said Acting Consumer Affairs Director Stephen B. Nolan. "It is an outrage that Duane Reade promised in August to stop the practice and only a month later was at it again."

The stores inspected by Consumer Affairs personnel and found to have violations are located in Bayonne, Edgewater, Fort Lee, Hackensack, Jersey City, Maywood, Newark, South Jersey City, Union City and West New York.

Deputy Attorney General Jeffrey Koziar is representing the state in this matter.

In October, the state filed suit against the Rite Aid drugstore chain for allegedly selling expired and mispriced products to consumers. That matter remains pending.

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