Wal-Mart Settles Charges It Sold Expired Drugs, Formula

Wal-Mart has agreed to pay the State of New Jersey $775,000, following a finding that it sold or offered to sell expired infant formula and non-prescription drugs to consumers.

Under the terms of the agreement, the retail giant will also revise its business practices to comply with state laws and regulations. The settlement resolves a lawsuit brought by the state in 2008.

A court ruled in August that the Office of the Attorney General and State Division of Consumer Affairs had proven four of the eight counts in their lawsuit - including that Wal-Mart had sold or offered to sell infant formula and non-prescription drugs beyond their marked expiration dates and that items on sale scanned at incorrect prices.

The remaining counts, which charged various instances of unconscionable business practices among other violations, were to be the subject of trial scheduled to begin this week in State Superior Court in Hudson County.

Under the terms of the settlement, the company will pay $500,000 in civil penalties, plus reimburse the state $160,000 for its legal expenses and $40,000 for its investigative costs. Additionally, Wal-Mart will pay $75,000 to fund a consumer education initiative.

Uniform policies

The settlement also requires that Wal-Mart maintain uniform policies for the periodic inspection of non-prescription drugs and/or infant formula and for monitoring the price accuracy of merchandise at Walmart Stores in New Jersey, to ensure that merchandise is not sold at a price in excess of the posted price.

"This settlement puts the onus on Wal-Mart to check expiration dates when stocking its shelves, to periodically recheck stocked items, and then remove from sale any infant formula or non-prescription drugs that are past expiration," Attorney General Paula T. Dow said. "A responsible retailer should do no less and we expect full compliance at Wal-Mart's 54 New Jersey stores."