NEWARK - The Attorney General's Office and the Division of Consumer Affairs have filed suit against Rite Aid Corporation and Rite Aid of New Jersey, Inc., alleging that the defendants sold expired merchandise, including non-prescription drugs, infant formula and baby food, and charged consumers prices in excess of those listed on the shelf, Attorney General Stuart Rabner and Acting Director Stephen B. Nolan announced today.

The complaint, filed in State Superior Court in Union County, seeks to assess civil penalties, consumer restitution and to direct the defendants to remove and destroy all expired non-prescription drugs, infant formula or baby food from any Rite Aid store in New Jersey. The complaint alleges that the defendants violated the Consumer Fraud Act (CFA) and the Weights and Measures Act, and violated the terms of prior agreements with the Division.

"It is unconscionable that a store would sell expired merchandise - especially infant formula, baby food and nonprescription medications - to unsuspecting consumers who rely on these products for the care and welfare of their loved ones," said Attorney General Rabner. "The behavior of these stores is even more egregious because they had previously agreed not to engage in any such violations and cease and desist from selling expired products."

"We would expect that these stores would not sell expired merchandise. Unfortunately, our investigators found otherwise and directed the managers at the stores that were inspected to remove expired products from the shelves," said Acting Director Nolan. "It is our intention that this suit will halt all sales of expired or overpriced merchandise and ensure that consumers are protected."

During the period of August 14, 2006 through October 3, 2006, the Division, including the Office of Weights and Measures and the Office of Consumer Protection, investigated approximately 104 retail drug stores operated by either Rite Aid Corporation, a Delaware corporation established in April 1968, or Rite Aid of New Jersey, Inc., a New Jersey corporation established in October 1971. The defendants currently operate approximately 159 Rite Aid stores in New Jersey.

The State's complaint alleges that the defendants' conduct included the following violations of the CFA:

• the sale of expired merchandise at approximately 42 retail stores;

• unconscionable commercial practices, false promises and/or misrepresentations;

• failure to post a refund policy or obscuring the posted refund policy at approximately 31 retail stores;

• charging consumers prices that exceed the price posted at the point of display;

• violation of an October 2001 assurance of voluntary compliance (AVC) by defendants; and

• violation of a November 2001 consent order and a June 2005 consent order by Rite Aid NJ

The State's complaint also alleges that the defendants violated the Weights and Measures Act due to improper price scanning by at least 76 store locations.

Deputy Attorney General Geoffrey R. Gersten is representing the state in this matter.

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