Save Mart to Pay $1.6M to Resolve Claims of Selling Expired Products
Without admitting or denying liability, California-based Save Mart Supermarkets will pay $1.6 million to resolve claims that it sold expired over-the-counter (OTC) medications, baby food and infant formula beyond their “use by” dates.
The case was filed in California’s Yolo County Superior Court by the district attorneys of El Dorado, Marin, San Joaquin, Solano, Sonoma and Yolo counties. The settlement resolves allegations that Save Mart Supermarkets LLC violated state health and safety laws restricting the sale of certain products past their expiration or “use by” dates.
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A joint investigation found a recurring failure by the company to remove from its shelves expired OTC medications, baby food and infant formula beyond their “use by” dates since at least 2018. The company cooperated with the investigation.
Upon being put on notice of the violations found during the investigation, Save Mart continued to cooperate. It conducted internal checks for the expired products that were past the “use by” date at all of its California retail locations. Save Mart further invested time and resources to prioritize the verification of expiration dates and retrain store personnel.
There was no evidence that the sale of the expired products, or those past their “use by” date, resulted in harm to consumers.
As part of the judgment, Save Mart was ordered to pay $1.56 million in civil penalties and costs, as well as another $40,000 in restitution to a trust that funds future consumer-related prosecutions.
“Consumers expect that the products they purchase at supermarkets are not expired, or beyond the ‘use by’ date provided by the manufacturer of the product," said Sonoma County District Attorney Carla Rodriguez. "We are proud to partner with other district attorneys around the state in bringing this important consumer protection action.”
Modesto, Calif.-based Save Mart, a Kingswood Capital Management LP portfolio company, has almost 200 Save Mart, Lucky and FoodMaxx stores in California and western Nevada. In addition to its retail operation, it operates SMART Refrigerated Transport and is a partner in Super Store Industries, which owns and operates a distribution center in Lathrop, Calif., and the Sunnyside Farms dairy-processing plant in Turlock, Calif. As California’s largest regional full-service grocery chain, Save Mart employs 13,000 associates. The company is No. 53 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
