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Uploaded: Thursday, October 11, 2012, 9:14 AM
Rite Aid to pay $800,000 for false advertising
Lawsuit alleged company violated state laws with +Up Rewards and Wellness card advertising campaigns
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by Sue Dremann
Palo Alto Weekly Staff
Rite Aid Corporation has agreed to pay $800,000 for false and deceptive advertising. The company has settled a civil law-enforcement suit with the Santa Clara County District Attorney's Office and DA offices in Riverside and Ventura counties, the Santa Clara County DA has announced.
The suit filed in San Diego County alleged that Rite Aid violated state laws prohibiting false and deceptive advertising in its +Up Rewards and Wellness card advertising campaigns. The company also failed to redeem gift cards with a cash value of less than $10.
The complaint alleges Rite Aid advertisements conveyed to consumers that they would pay lower prices for items purchased using the Rite Aid Wellness+ Card.
Once at the register, the customer could not purchase the item at the advertised price. Instead, the customer received a printed coupon printed on the end of their receipt for savings on a future purchase. The coupon had an expiration date and other restrictions.
Rite Aid failed to adequately inform consumers that the product could not be purchased at the advertised price.
In the settlement, Rite Aid agreed to clearly display the program's limitations and all the conditions necessary for customers to purchase items for advertised prices.
Rite Aid will also program their credit card terminals to inform the customer when their gift card has a balance of less than $10. The terminal will be prompted to ask the customer if he or she wishes to redeem the gift card for the cash balance.
"This is a victory for all California consumers. The law provides that advertising must be clear such that the consumer knows what he or she will pay for an item before making a purchase and it must not be deceptive," Santa Clara County Prosecutor Tina Nunes-Ober said.
Santa Clara County, home to 21 Rite Aid stores, will receive $175,000 in civil penalties and be reimbursed $1,457 for the costs of the prosecution. Rite Aid will be bound by the terms of a permanent injunction prohibiting similar violations in the future.Are you receiving Express, our free daily e-mail edition? See a sample and sign-up for Express.
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Posted by voter, a resident of the College Terrace neighborhood, on Oct 11, 2012 at 10:01 am Big corporations taking advantage of middle class consumers. If Romney wins the election, expect this kind of law enforcement to end.
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Posted by Jan H., a resident of the Old Palo Alto neighborhood, on Oct 11, 2012 at 11:45 am Of course this kind of law enforcement will end if Romney gets elected. He is not a member of the middle class, and does not have a clue about how real Americans live.
Romney has had e erything given to him his whole life. He has always been privileged and protected from reality. His approach to the deficit is to,just cut everything to fix it, even if it is a necessity. He will always have everything he needs and wants regardless.
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Posted by Obama supporter, a resident of another community, on Oct 11, 2012 at 12:40 pm Jan- on this thread you are down on Romney. In other threads you have denigrated Obama. So which is it or are you bored.?
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Posted by just saying, a resident of Another Palo Alto neighborhood, on Oct 11, 2012 at 1:06 pm Obama supporter,
People can be critical of more than one person or party.
The bigger issue is that we've had a predatory economic environment for far too long, brought to up by the GOP worldview that comes with supplyside economics, and that actually hurts most businesses -- at least the ones that rely on lots of people having disposable income, as opposed to a few buying luxury goods. I think that's why the former CEO at Costco was speaking for Obama at the convention.
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Posted by Jan H., a resident of the Old Palo Alto neighborhood, on Oct 11, 2012 at 5:49 pm Obama supporter: I am critical of both, and mistrustful of both, but for reasons unique to each. The only thing the two candidates have in common ( my opinion), is that they both seem to be from outer space. I think we are in for trouble no matter who is elected. Romney is an elitist, and from what I have been told by people who have worked with him on education and technology issues, Obama really isn't that bright or informed, but he is a smooth talker.
So really, the country is between the devil and the deep blue sea. All we can do is chose the lesser of the two evils, who I think is Obama. But that gives me no comfort. Married to an economist as I am, I am aware of thing the vast majority of people are not.
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Posted by I Miss Action Line, a resident of the Esther Clark Park neighborhood, on Oct 11, 2012 at 8:28 pm Things like this make me miss Dennis Rockstroh's Action Line column in the SJ MurkyNews. I hope they'll realize what a value it has been and will reinstate it.
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Posted by Mayfield Child, a resident of the Green Acres neighborhood, on Oct 13, 2012 at 6:52 pm Didn't know the real reason why Dennis' column was discontinued..can you enlighten me?
Dennis' ACTION line did just that.....while our DA takes just a few cases, he takes on most all kinds WITHOUT prejudice and gets RESULTS...
His investigation is faster and I also hope he gets his column up again to help protect all of us "little people"....................................................
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Posted by resident, a resident of the Adobe-Meadows neighborhood, on Oct 13, 2012 at 8:46 pm In one of his last columns, Dennis Rockstroh said he decided to retire at age 70.
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Posted by geraldine , a resident of the Green Acres neighborhood, on Nov 2, 2012 at 8:14 pm I understand Dennis' quest for retirement as listening to complaints day after day after day can be quite annoying. I hope he is enjoying his retirement! ( I worked for the County of Santa Clara's Social Services and can vouch of the horrendous work loads...very tedious work also.)Finding a dedicated person who knows the ropes and quest for action may be difficult. Someone needs to step up to the plate and ask for reinstatement of his job slot.......Takers??? Hopefully!!!!!
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