CA judge: Rite Aid must pay $800,000 settlement


SAN DIEGO -- City officials say a San Diego judge ordered Rite Aid Corp. and its California subsidiary Thrifty PayLess Inc. to pay $800,000 to settle a complaint alleging false advertising.

San Diego Superior Court Judge Ronald S. Prager's order Wednesday settled the case filed by district attorney's offices in Southern California.

Prosecutors say Rite Aid led consumers to believe they would pay less for items bought using the company's Wellness Card but instead were given a coupon and told it was for a future purchase that would expire and was subject to other restrictions.

Prosecutors say the stores also refused to redeem gift cards with a balance of less than $10 for cash, as required by California law.

Rite Aid said in a statement it will remedy the situation.