Walgreen's has agreed to pay the second largest fine in state history for its failure to individually price items as required under Michigan law.
Thee settlement follows the issuance of a Notice of Intended Action on September 19, 2006, after a joint investigation by the Department of Agriculture and the Attorney General's Consumer Protection Division found that numerous Walgreen's locations throughout Michigan had failed to individually price items.
The $550,000 settlement is Michigan's second largest in an item-pricing case. In April of this year, the state settled an item-pricing case with Wal-Mart for $1.5 million.
The settlement "will help to ensure that Walgreen's will continue to abide by the terms of Michigan's Item Pricing Act. It should also serve as a warning to would-be violators that failure to comply with the act may lead to substantial financial penalties," said Attorney General Mike Cox.
Cox noted that upon issuance of the Notice of Intended Action, Walgreen's worked quickly to come into compliance with the item-pricing law. "I am hopeful that Walgreen's will now be able to set a positive example for other Michigan retailers through its newfound compliance with the Item Pricing Act," he said.
Under terms of the settlement, Walgreen's will pay $550,000 in penalties and reimbursement for costs incurred by the State. Walgreen's also must maintain compliance with Michigan's Item Pricing Act.
Earlier this year, investigators from the Department of Agriculture and the Department of Attorney General conducted an audit of six Walgreen's stores, examining thousands of items in the process. In addition, the Attorney General's office conducted a less formal audit of five other Walgreen's stores.
Results of the audits showed that the average compliance rate at the 11 Walgreen's stores was 30.9%.
