Business & Real Estate

Raley’s to pay $420,000 to settle allegations that stores sold expired goods

Cars fill the parking lot for Raley’s on Freeport Boulevard in Sacramento at sunset on Tuesday, Dec. 17, 2024.
Cars fill the parking lot for Raley’s on Freeport Boulevard in Sacramento at sunset on Tuesday, Dec. 17, 2024. nlevine@sacbee.com

The Raley’s Companies agreed to pay $420,000 to settle allegations that its stores sold expired over-the-counter medications and baby formula.

The agreement marks the second time in recent years that authorities have targeted the West Sacramento-based grocer for selling expired inventory. In 2019 the company agreed to pay $350,000 to settle a similar lawsuit.

The district attorneys of Yolo, Sacramento, San Joaquin, Shasta and Sonoma counties filed a complaint against the company in Yolo Superior Court on April 11. They claimed that for nearly three years the agencies had investigated Raley’s stores in 10 counties, and found items available on shelves after the “use by” dates had passed.

The complaint said the stores sold outdated over-the-counter drugs, infant formula and baby food.

Raley’s spokesperson Chelsea Carbahal said in an email Tuesday that the company has policies, training and software in place to ensure that goods are removed from shelves before expiration dates. She said the primary focus of the investigation was dandruff shampoo, SPF lip balm and sunscreen, and that under the terms of the deal, the company did not admit guilt.

The settlement was filed Monday. The company agreed to pay $278,000 in civil penalties, and $111,000 to reimburse costs of investigation and enforcement.

Due to the difficulty of identifying customers who had purchased expired products, the company agreed to pay an additional $31,000 to be divided among the Consumer Protection Trust Fund and food banks in the five counties involved in the suit. The grocer also committed to audit certain products with inventory tracking software.

This story was originally published April 22, 2025 at 4:33 PM.

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Annika Merrilees
The Sacramento Bee
Annika Merrilees is a business reporter for The Sacramento Bee. She previously spent five years covering business and healthcare for the St. Louis Post-Dispatch.
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