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A Cure for Common Overcharging: CVS Pharmacy Will Payout $2M in False Advertising Lawsuit

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CVS Pharmacy got called out, and now they're going to be paying out: The company announced today they will pay $2 million as a result of a consumer protection civil lawsuit filed earlier this month by the District Attorneys of Los Angeles, Riverside and Ventura counties. The suit alleges CVS used false advertising by not providing an immediate discount for some advertised items.

An investigation also determined that between 2006 to the present, CVS routinely charged consumers more for items than the advertised sale price, report L.A. County officials.

The payout is broken down as $1.2 million in civil penalties and $420,000 in investigative costs, and a $300,000 contribution to California's Department of Measurement Standards, as well as an additional $100,000 to the Consumer Protection Trust toward enforcement of consumer protection laws.

Though they worked with prosecutors on the settlement, CVS agreed to the payout "without admitting liability."

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CVS says they'll be more vigilant about their pricing programs, and will put in place weekly checks to monitor pricing and to ensure customers are getting charged the right price at the register.

Last year, local large grocery chain Ralphs was sued for price gouging, however they pleaded no contest in the case.