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Walgreens to pay $500,000 to settle allegations of deception

By Mark Iandolo | Apr 26, 2016

NEW YORK (Legal Newsline) – Walgreens Co. and its subsidiary Duane Reade (collectively, Walgreens) agreed to a settlement with New York Attorney General Eric T. Schneiderman over allegations of overcharging state consumers and using misleading advertising.

“Businesses are required to ensure that their advertisements are truthful and not misleading,” Schneiderman said. “When consumers purchase products at retail stores in New York, they should be able to rely on the prices displayed in advertisements and on shelf tags and not have to worry about being overcharged when they get to the register.”

According to Schneiderman’s office, Walgreens deceived consumers by charging them a different price at the register than the consumers had seen at the shelf or in a print advertisement. Additionally, the company failed to provide consumers with accurate information about its Balance Rewards program.

“Walgreens has failed to provide the staffing and systems needed to accurately price its products,” Michael Zucker, director of Change to Win Research Initiatives, said. “We’ve seen these deceptive practices in a number of other states, costing consumers and violating the public trust. We applaud Attorney General Schneiderman for taking strong action and standing up for New York consumers.”

Walgreens will pay $500,000 in penalties, fees and costs.

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