LOS ANGELES – CVS Pharmacy Inc. has agreed to designate two executives who will be accountable for pricing issues in Southern and Northern California under a judgment modifying a 2015 settlement for allegedly overcharging customers, the Los Angeles County District Attorney’s Office announced Wednesday.
The Rhode Island-based company also agreed to pay an additional $551,687 as part of the judgment approved Dec. 20 by Los Angeles Superior Court Judge Elizabeth Allen White.
The pharmacy chain reached a $2.4 million settlement in May 2015 in a lawsuit alleging it engaged in misleading advertising by charging more than the advertised price for products and failing to give cash back on gift cards less than $10 as required by state law.
The modification to that settlement resulted from new violations discovered by county weights and measures agencies and continuing problems with price accuracy in Southern and Northern California, according to the Los Angeles County D.A’s office.
The judgment added a $485,000 civil penalty that will be equally distributed among the prosecuting agencies in the new matter — the Los Angeles, Riverside and Santa Cruz county district attorney’s offices.
The remaining money will go toward investigative costs and a trust fund used to enforce consumer protection laws.
Under the original settlement, CVS was also required to augment its “Scan Right” guarantee program by keeping track of when customers are overcharged. If an item scans at a price higher than the shelf or lowest-advertised price, the company either gives the item for free if the price is $4 or under or $4 is deducted from the lowest-advertised price if an item is more than $4.