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Dollar Store Chains Fined $1.2 Mln 'for Selling Expired Products'

(RTTNews) - Dollar General Corp., Dollar Tree Inc. and Family Dollar have been fined for selling expired and obsolete products, including over-the-counter drugs, the New York Attorney General said in a statement.

The discount retail chains will pay $1.2 million in fines after a multi-month undercover investigation over the chains' sale of expired products, Attorney General Letitia James said.

Dollar General was fined for the sale of obsolete motor oil, while Dollar Tree and Family Dollar were imposed fine for their failure to comply with New York's bottle deposit law.

The settlements with the three stores also require them to make significant reforms to their policies and procedures for managing their stock of over-the-counter drugs.

"These settlements will ensure that Dollar General, Dollar Tree, and Family Dollar will not only pay both a substantial fine and damages, but, more importantly, update their business practices to comply with the law so that no expired over-the-counter drugs are sold to a New York consumer again," said New York Attorney General Letitia James.

Dollar General discontinued the sale of obsolete motor oil during the course of the investigation and agreed to pay $1.10 million to the State of New York.

Dollar Tree and Family Dollar have agreed to comply with New York's bottle deposit law, train their employees on redemption procedures, and pay $100,000 in penalties and costs.

Family Dollar was acquired by Dollar Tree in 2015. However, each chain continues to maintain separate store operations.

An investigation that began in March 2016 with undercover visits to numerous Dollar stores throughout New York State found the stores sold over-the-counter drugs that were months beyond their expiration dates, which is prohibited by New York law.

Additionally, investigators found that a number of Dollar General stores sold store-branded motor oils that are obsolete. This includes oil that is not suitable for most automobile engines built after 1930 and 1988.

Investigators also found in December 2017 that Dollar Tree and Family Dollar stores violated New York's bottle deposit law by not accepting deposit bottles for return, or by only accepting them with proof of purchase.

Some of these stores also charged a bottle deposit, even though the bottles are not subject to New York's bottle deposit law.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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