Google Plus Facebook LinkedIn Twitter Vimeo RSS

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.

 

Brent Burkey

Brent Burkey

Brent Burkey covers York County, agribusiness, energy and environment, and workforce issues. Have a tip or question for him? Email him at brentb@cpbj.com. Follow him on Twitter, @brentburkey.

Related Stories

Leave a Comment

test

Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy

Comments

close
Subscribe to Our Newsletters!
Click Here to Subscribe for Free Now!