|
Newark
– Attorney General Anne Milgram today
announced that Target Corporation has agreed
to a $375,000 settlement to resolve a lawsuit
alleging that Target Stores sold infant formula
and non-prescription drugs beyond expiration
dates, sold merchandise that did not match
posted prices, and failed to post prices on
its merchandise. The settlement also resolves
allegations that Target failed to maintain
sufficient quantities of advertised merchandise,
failed to post its raincheck policy, failed
to post bicycle safety notices, and violated
a previous Consent Order with the New Jersey
Division of Consumer Affairs.
As
part of the settlement, Target has voluntarily
created a new senior management position,
entitled Group Pricing Compliance Specialist,
whose duties include monitoring compliance
with Target’s policies as well as the
settlement terms as to price accuracy. Target
has also agreed to provide all Target employees
in the state with initial training as to price
accuracy. The compliance position and the
initial training shall be in effect for two
years.
“We
will continue to monitor all major retail
chains to ensure that consumer rights are
protected and out-of-date non-prescription
drugs and infant formula are not available
for sale on store shelves,” Attorney
General Milgram said.
The
Office of the Attorney General, the Division
of Consumer Affairs, and the Office of Weights
and Measures filed suit against Target in
September 2008, after inspections of 21 of
the company’s 40 New Jersey stores by
investigators from the Division’s Office
of Consumer Protection and the Office of Weights
and Measures.
Under
the settlement, Target has agreed not to sell
or offer for sale any non-prescription drugs
or infant formula beyond their expiration
dates, to check the expiration dates before
displaying such merchandise for sale, to conduct
weekly checks of the expiration dates of the
merchandise offered for sale and to arrange
for the destruction or return to the manufacturer
or supplier of any expired merchandise removed
from the store shelves.
Further,
Target agreed not to sell or offer for sale
merchandise at a price that exceeds the price
posted at the point of display. Target also
agreed not to sell or offer for sale any merchandise
unless the total selling price is plainly
marked by a stamp, tag, label or sign. In
addition, Target agreed to have a sufficient
quantity of advertised merchandise to meet
anticipated demand or shall advertise merchandise
as available in limited quantities. Finally,
Target agreed to conspicuously post its raincheck
policy as well as the notices required by
the state’s Bicycle Safety Act and Regulations.
“We
expect retailers to treat their customers
fairly, and that means proper pricing and
having merchandise available as advertised,”
said Consumer Affairs Division Director David
Szuchman. “It is significant that Target
has agreed to create a new senior management
position specifically to ensure compliance
with the company’s polices and the terms
of the settlement as to price accuracy.”
The
$375,000 settlement amount represents $350,000
in civil penalties, $10,000 to reimburse the
state’s attorney fees, and $15,000 to
reimburse the state’s investigative
costs.
Deputy
Attorney General Jah-Juin Ho of the Consumer
Fraud Prosecution Section represented the
state in this action.
The
state previously reached settlements with
Rite Aid Corporation ($475,000) and Duane
Reade ($200,000) to settle actions which concern
similar allegations of sale of expired merchandise
and sale of merchandise at a price that exceeds
the price posted at the point of display.
Suits are still pending against Wal-Mart and
Drug Fair.
###
|
