Target Settles Expired Infant Formula Suit

Target Corp. has agreed to pay New Jersey $375,000 and adjust its business practices to resolve a lawsuit alleging that it sold expired infant formula, non-prescription drugs and merchandise that didn't match posted prices.

NEWARK, N.J. — Target Corp. has agreed to pay New Jersey $375,000 and adjust its business practices to resolve a lawsuit alleging that it sold expired infant formula, non-prescription drugs and merchandise that didn't match posted prices. Target was sued in September 2008 after 21 of its 40 New Jersey stores were inspected.

As part of the settlement Target has voluntarily created a senior management position called a group pricing compliance specialist, whose duties include monitoring compliance with Target's policies and the settlement's price accuracy terms. The retailer has also agreed to train its New Jersey employees on price accuracy; check expiration dates before merchandising items, and on a weekly basis; and not sell merchandise whose price is not clearly displayed, or at a price exceeding the price posted at the point of display.

The retailer must also keep sufficient quantities of advertised items on hand to meet anticipated demand.

"We will continue to monitor all major retail chains to ensure that consumer rights are protected and out-of-date non-prescription drugs and infant formula are not available for sale on store shelves," said New Jersey Attorney General Anne Miligram, in a statement.

New Jersey previously reached settlements of lawsuits alleging similar offenses with Rite Aid Corp. and Duane Reade. Suits against Wal-Mart and Drug Fair are still pending.

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