NEWARK
– Wal-Mart, following a finding that
it sold or offered to sell expired infant
formula and non-prescription drugs to consumers,
has entered into settlement with the state
to pay $775,000 and revise its business
practices to comply with state laws and
regulations, under terms of a Final Consent
Judgment that resolves a 2008 lawsuit.
The
settlement comes following a ruling by Judge
Thomas P. Olivieri in August that the Office
of the Attorney General and State Division
of Consumer Affairs had proven four of the
eight counts in their lawsuit – including
that Wal-Mart had sold or offered to sell
infant formula and non-prescription drugs
beyond their marked expiration dates and
that items on sale scanned at incorrect
prices. The remaining counts, which charged
various instances of unconscionable business
practices among other violations, were to
be the subject of trial scheduled to begin
yesterday in State Superior Court in Hudson
County.
Under
the terms of the settlement, the company
will pay $500,000 in civil penalties, plus
reimburse the state $160,000 for its legal
expenses and $40,000 for its investigative
costs. Additionally, Wal-Mart will pay $75,000
to fund a consumer education initiative.
The
settlement also requires that Walmart maintain
uniform policies for the periodic inspection
of non-prescription drugs and/or infant
formula and for monitoring the price accuracy
of merchandise at Walmart Stores in New
Jersey, to ensure that merchandise is not
sold at a price in excess of the posted
price.
“This
settlement puts the onus on Wal-Mart to
check expiration dates when stocking its
shelves, to periodically recheck stocked
items, and then remove from sale any infant
formula or non-prescription drugs that are
past expiration,” Attorney General
Paula T. Dow said. “A responsible
retailer should do no less and we expect
full compliance at Wal-Mart’s 54 New
Jersey stores.”
Wal-Mart
admitted no liability or wrongdoing in reaching
settlement with the state. This settlement
supersedes a Consent Order between Wal-Mart
and New Jersey entered in April, 2004 to
resolve similar allegations that the company
sold or offered to sell expired infant formula
and non-prescription drugs.
“Whether
the company is the world’s largest
retailer or a mom-and-pop operation, we
will act whenever laws are violated and
the well-being of our consumers are at risk,”
said Thomas R. Calcagni, Acting Director
of the New Jersey Division of Consumer Affairs.
“Our consumer protection laws will
be followed -- no excuses, no exceptions.”
The
Office of the Attorney General and Division
of Consumer Affairs sued Wal-Mart, Target
and Drug Fair in September, 2008, alleging
each retailer had violated the state’s
Consumer Fraud Act and Weights and Measures
Act. Target settled with the state in November,
2009, paying $375,000 and agreeing to revise
its business practices. Drug Fair went out
of business before the state’s lawsuit
could be resolved.
Deputy
Attorneys General Lorraine K. Rak, Chief
of the Consumer Fraud Prosecution Section,
and Nicholas Kant, represented the state
in this matter. Investigators from the Office
of Consumer Protection and State Weights
and Measures officers conducted the inspections
of the stores.
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