NEWARK – Attorney General Anne Milgram today announced that her office and the Division of Consumer Affairs have filed suit against Drug Fair, Target and Wal-Mart for allegedly selling infant formula and non-prescription drugs beyond the expiration date marked on these items and also for selling back-to-school merchandise that did not match the posted prices.

All three companies face enhanced civil penalties because each violated terms of Consent Orders previously reached with the state for the alleged sale of expired infant formula and non-prescription drugs. Each company paid civil penalties and agreed not to offer those out-of-date products for sale, under terms of the Consent Orders.

“These companies violated their previous settlements with the state and violated the trust of consumers once again,” Attorney General Anne Milgram said. “I have no tolerance for repeat violators and neither should consumers.”

The three lawsuits against Drug Fair, Wal-Mart and Target are the latest in a series of actions taken by the Attorney General and Consumer Affairs against retailers who have allegedly overcharged consumers and sold out-of-date infant formula and non-prescription drugs.

Rite Aid this June agreed to pay $475,000 to settle similar allegations against it and Duane Reade agreed to pay $200,000 in November 2007.

Consumer Affairs investigators also found that products advertised in store flyers, including ‘back-to-school’ items such as binders, calculators and printers, were not in stock. Consumers Affairs investigators, including Office of Weights and Measures inspectors who have regulation of scanning devices, conducted unannounced store inspections in late August.

“Consumers are being squeezed in this era of $4 a gallon gasoline and $4 a gallon milk. Consumers who based their back-to-school shopping on advertisements and then found that the items either weren’t in stock, or scanned at a higher than listed price, were defrauded,” said David Szuchman, Consumer Affairs Director.

The state’s Complaints, filed in State Superior Court in Hudson and Union counties, allege that Drug Fair, Target and Wal-Mart each violated the state’s Consumer Fraud Act by offering for sale expired merchandise; engaging in unconscionable commercial practices; and making false promises and misrepresentations. Each company also allegedly violated the state’s Weights and Measures Act by inaccurate price scanning.

Target and Wal-Mart also allegedly violated the Consumer Fraud Act by failing to display selling prices. Target also committed a violation by failing to post its rain check policy.

Drug Fair, Target and Wal-Mart also allegedly violated the state’s Advertising Regulations by not having sufficient quantities of items in stock.

Target and Wal-Mart also allegedly violated the state’s Bicycle Safety Act by not having proper notice of New Jersey’s bike helmet law posted for consumers.

Under the enhanced violations being sought by the state, each violation of the prior Consent Orders carry a civil penalty of up to $20,000.

Deputy Attorneys General Jah-Juin Ho, Nicholas Kant and Jeffrey Koziar are representing the state in these cases.

Lists showing the violations found at each store are attached.

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DRUG FAIR

Stores where infant formula and/or non-prescription drugs allegedly were offered for sale past the listed expiration dates:

DRUG FAIR

Stores where merchandise allegedly scanned at a price in excess of the price listed at the point of display:

DRUG FAIR

Stores where advertised merchandise allegedly was not maintained in sufficient supply:

WAL-MART

Stores where infant formula and/or non-prescription drugs allegedly were offered for sale past the listed expiration dates:

WAL-MART

Stores where merchandise allegedly scanned at a price in excess of the price listed at the point of display:

Stores where merchandise allegedly was offered for sale without a plainly marked total selling price:

WAL-MART

Stores where advertised merchandise allegedly was not maintained in sufficient supply:

Stores where bicycles allegedly were sold without the bike helmet law being posted:

TARGET

Stores where infant formula and/or non-prescription drugs allegedly were offered for sale past the listed expiration dates:

TARGET

Stores where merchandise allegedly scanned at a price in excess of the price listed at the point of display:

Stores where merchandise allegedly was offered for sale without a plainly marked total selling price:

TARGET

Stores where the rain check policy allegedly was not posted:

Stores where advertised merchandise allegedly was not maintained in sufficient supply:

Stores where bicycles allegedly were sold without the bike helmet law being posted:

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