Attorney general sues Walgreens

Missouri Attorney General Chris Koster has filed a civil lawsuit against Deerfield, Ill.-based Walgreen Co. (NYSE: WAG) for allegedly engaging in deceptive advertising and pricing schemes.

The result of a two-month investigation by Koster's office, the suit claims Walgreens stores advertised lower prices on display tags but actually charged higher prices at checkout, according to a news release.

In June and July, officials made undercover visits to eight random Walgreens stores in five Missouri cities - Springfield, St. Louis, Kansas City, Jefferson City and Osage Beach - and found nearly all stores visited had pricing discrepancies between the displayed price for the product and cost at checkout. According to the suit, investigators found 43 price discrepancies among 205 purchased products, resulting in overcharges 21 percent of the time.

The suit also alleges Walreens offered price reductions or savings at checkout for its rewards membership program but did not always provide the savings as advertised. In addition, Koster claims investigators found sale display tags that were inaccurate and left on shelves past their expiration date, according to the release.

“Consumers have a right to expect the price they will pay at the register is the same as the price displayed on the shelf,” said Koster, who visited Springfield yesterday to announce the investigation and legal action. “The sheer volume of tags on the shelves makes it nearly impossible to recall the details of each offer. Consumers should not have to double-check the price tags or signage and compare them to the prices charged at the register.”

Koster is seeking an injunction prohibiting Walgreens from engaging in deceptive pricing and forcing the company to pay civil penalties and reimbursements for the cost of the investigation and prosecution, the release said.[[In-content Ad]]