Safeway to Pay $2.7M in Calif. Settlement: Report

PLEASANTON, Calif. — Safeway here has reportedly agreed to pay $2.7 million to six California counties to settle a lawsuit filed in Napa County Superior Court. According to published reports, the case involved complaints that Safeway had failed to get proper permits for store remodels and hot-food stations; it also reportedly involved pricing and weighing accuracy issues throughout the state. In agreeing to the settlement, Safeway did not acknowledge any wrongdoing, the reports said. The settlement money will be divided among the six counties’ district attorneys to help combat consumer fraud, with some of the money also going to county building departments, weights and measures departments and environmental management departments, according to the reports. Safeway also agreed to implement programs at store level aimed at improving the accuracy of its pricing and weighing procedures, including a guarantee that it will pay up to $5 if a consumer is charged a price higher than the chain’s lowest advertised price at the time of purchase. The price guarantee will be posted in every Safeway-owned store in California, the reports said. Safeway could not be reached for comment.

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