NJ, Kmart Reach Settlement Over Expired Medications, Baby Formula

Kmart will pay $302,500, donate $25,000 worth of infant formula to charity, pay for continued unannounced state inspections, and implement new product inspection measures as part of a settlement with the state Division of Consumer Affairs, officials announced Friday.

The Michigan-based big box store had been found to have sold or offered for sale expired infant formula and over-the-counter medications, the Division of Consumer Affairs announced on Friday.

During inspections conducted in March 2010 at 32 of 34 Kmart stores then in operation in New Jersey, inspectors found 257 packages of infant formula, as well as non-prescription medications, that were between nine months to 29 months past the expiration date, but still available for purchase on the shelves at 19 stores in 13 counties.

Gloucester Township's Blackwood Clementon Road Kmart was not among the stores found to be selling expired baby formula and over-the-counter medicine.

In addition to the fine and donation, Kmart will appoint two senior level management employees for 18 months to serve as compliance liaisons with the state. They will conduct unannounced inspections of Kmart’s New Jersey stores to identify expiring and expired products, and review the stores’ compliance with Kmart’s policies regarding the expiration dates of infant formula and non-prescription medication, a statement said. 

At least 20 of Kmart’s New Jersey stores will be inspected each quarter under the settlement.

The compliance liaisons will then submit quarterly reports to the Division of Consumer Affairs, and meet with state inspectors over an 18-month period. Each Kmart store will now have to have two "date code inspectors" on hand who will inspect dated items and keep a rotational calendar updated and on hand.

Kmart will also provide funding for random, unannounced inspections of its New Jersey stores by the Division of Consumer Affairs for one year, according to the settlement.

The expired items were found in stores located in Atlantic, Bergen, Burlington, Camden, Cape May, Essex, Gloucester, Mercer, Monmouth, Morris, Ocean, Passaic and Somerset counties.

Kmart's Berlin location was among the company's 19 New Jersey stores found to be selling expired baby formula and non-prescription medications. The White Horse Pike store was found to be selling 32 expired items, according to documents.