SAN JOSE (CBS/AP) — Drug store chain Walgreens has agreed to pay a little more than $1.4 million in civil penalties and to establish a price guarantee program for its California customers to settle a lawsuit brought by prosecutors in four Bay Area counties.

Santa Clara Deputy District Attorney Martha Donohoe said Wednesday that the settlement is designed to resolve “multiple” discrepancies inspectors found between the prices Walgreens advertised on its shelves and what people were charged.

The terms require the company to create a “Scanner Price Guarantee” program at its 625 California stores.

Donohoe says customers who are overcharged at checkout will be entitled to receive an item for free if it cost under $5, and either a $5 discount or a $5 credit if it cost more than that.

Walgreens did not admit to willful wrongdoing in agreeing to the settlement.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


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