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Rite Aid, subsidiary ordered to pay $800K in Calif. court settlement

By , - Last modified: October 17, 2012 at 11:59 AM

A judge in California has ordered Cumberland County-based Rite Aid Corp. and its subsidiary, Thrifty PayLess Inc., to pay $800,000 in costs and civil penalties related to allegations of false advertising and not properly redeeming gift-card balances, according to a news release.

Specifically, the complaint alleged that Rite Aid advertisements conveyed that customers using wellness+ cards would pay less for purchases, but a customer instead received a coupon subject to restrictions toward a future purchase, the release stated.

Stores also allegedly refused to redeem gift cards with balances of less than $10 for cash as required by state law, according to the release from San Diego City Attorney Jan. I. Goldsmith’s office.

Rite Aid has agreed to make in-store changes, the release stated.

The company released a statement saying it has cooperated since it was made aware of the investigation about a year and a half ago, and that the stipulated final judgment does not constitute an admission by Rite Aid of any law violation.


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