Safeway, Albertsons, Vons settle price overcharges, false weight advertising complaint for nearly $4M
District attorney: Grocers also need to set up a price accuracy program
Safeway, Albertsons, and Vons have settled a civil law enforcement complaint that alleged the grocers engaged in false advertising and unfair competition, Sonoma County, Calif., District Attorney Carla Rodriquez announced on Thursday.
The grocery retailers will pay nearly $4 million after it was alleged they unlawfully charged customers prices higher than their lowest advertised or posted price at their California stores. Beyond the scanner violations, the grocers also had issues with inaccurate weights on their product labels.
Some items sold by weight such as produce, meats, baked goods, and other items had less product in the package than was displayed on the package label, according to the complaint.
“Trusting companies to sell products to consumers that are accurately weighed and priced, especially in today’s economy, is a priority to my office,” said Rodriquez. “My Environmental and Consumer Law Division works with the Sonoma County Agriculture Commissioner/Weights and Measures department to make sure businesses in our community correctly charge consumers.”
The judgment includes an injunction that prohibits the grocers from engaging in false or misleading advertising. It also prohibits 14 different unfair practices, from advertising short-weight products to failing to disclose exclusions in its “Just for U” or club card programs.
The grocers are also required to implement a price accuracy program which includes a guarantee provision that allows a consumer to be compensated up to $5 if they are overcharged. The program is an incentive to encourage consumers to report false advertising to the store directly as soon as it is discovered.
Safeway, Albertsons, and Vons operate 589 stores in California.
About the Author
You May Also Like