Walgreens Settles Pricing Dispute After New York’s Years Long Investigation
- Retailers should periodically audit their prices to ensure that the advertised prices are accurate and up to date.
- Retailers should ensure that items are only offered at “sale” prices for a limited period of time and that the sale items have been previously listed at a bona fide higher price for a reasonable period.
- Retailers should implement routine checks on advertising to ensure language is accurate and consistent with offerings.
What’s the News?
Walgreens recently settled with the state of New York over allegations that the drug retail chain misled consumers with its pricing, including value and clearance prices. According to the New York attorney general’s office, an undercover investigation showed that Walgreens was overcharging customers compared to the prices displayed in print advertising and on-shelf tags. Walgreens agreed to pay $500,000 to settle the dispute and has agreed to review and correct the allegedly misleading pricing practices. This should serve as a reminder to retailers in all industries of the need to exercise care in product pricing, as this area has become a common target for regulators and the plaintiff’s bar.
*This alert was originally posted on Arent Fox's Fashion Counsel blog. To read this alert in its entirety, please click here.