Press Release
FOR IMMEDIATE RELEASE
Date: 12/19/2008

Contact person(s):

Media Coordinator, Theresa Menshek - 565-3099 Media Spokesperson, Assistant District Attorney Christine Cook

Santa Rosa, Sonoma County, California

SUBWAY PAYS $645,000 TO SETTLE CONSUMER PROTECTION
CASE FOR MISLEADING ADVERTISING

Sonoma County District Attorney Stephan Passalacqua announced today that his Consumer Protection Unit and the District Attorneys of Marin and Santa Cruz counties reached a settlement in a civil law enforcement action against Subway. The complaint alleged that Subway made false or misleading statements to the public regarding special or promotional pricing and charged customers higher prices than the lowest advertised or posted price.

DA Passalacqua said, “This judgment demonstrates that state prosecutors and regulatory agencies are working together regionally and throughout the state to protect California’s consumers from misleading advertising.”

Under the terms of the settlement, Subway agreed, without admitting wrongdoing, to pay a total of $645,000 in civil penalties, costs, and restitution, and to injunctive provisions to ensure future compliance. The judgment requires Subway to implement procedures to inspect its California franchisees to ensure compliance with pricing and advertising accuracy requirements.

The civil complaint and judgment were filed in Marin County Superior Court on December 18, 2008. The case was investigated by the State Division of Measurement Standards, in conjunction with various County Departments of Weights and Measures throughout California, including Sonoma, Marin, and Santa Cruz counties. The investigation revealed that Subway advertised special promotions and failed to clearly and conspicuously disclose restrictions and limitations on the offers. As a result, some franchisees routinely overcharged customers who ordered items subject to various advertised promotions, including the “Sandwich of the Day,” “Make it a Meal,” and “Make it a Footlong” deals. Subway cooperated with inspectors and the District Attorneys' Offices during the investigation, and has since instituted new policies and procedures to improve advertising and pricing accuracy.

Deputy District Attorney Matt Cheever handled the matter for this office. Sonoma County consumers may call the Sonoma County Department of Weights and Measures at 707-565-2371 if they have a complaint or questions about pricing issues. Consumers with questions for the Sonoma County District Attorney’s Consumer Protection Unit may call 707-565-3161.