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Consumer Law
Consumer Protection
False Advertising

The People of the State of California v. Rite Aid Corporation

Published: Nov. 10, 2012 | Result Date: Oct. 10, 2012 | Filing Date: Jan. 1, 1900 |

Case number: 37-2012-00083218-CU-MC-CTL Settlement –  $800,000

Court

San Diego Superior


Attorneys

Plaintiff

Jan Goldsmith

Kristine Lorenz


Defendant

Karen Chen


Facts

Defendant Rite Aid Corporation advertised that customers could save money by purchasing items with a Rite Aid Wellness Card. However, when customers used the card during purchases, they were given a coupon with an expiration date on their receipt for use in future purchases. In addition, Rite Aid failed to redeem gift cards with balances under $10. The San Diego City Attorney's Office subsequently filed a complaint against Rite Aid for false advertising and unfair competition.

Result

Settlement in the amount of $800,000, and an injunction requiring Rite Aid to display information on how customers may purchase items at the advertised prices. Rite Aid must also have card terminals that will inform customers when gift cards fall below $10, and provide an option for customers to redeem the cards for cash.

Other Information

Co-Counsel for the People were the District Attorneys of Riverside, Ventura, and Santa Clara Counties.


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