Albertsons to pay close to $4M to settle civil law enforcement complaint

In the midst of multiple trials around the pending Kroger, Albertsons merger, Albertsons now must pay $3.9 million to settle a civil law enforcement complaint alleging that the retailer engaged in false advertising and unfair competition.

Last week, Los Angeles County District Attorney George Gascón announced that Albertsons, its brand Vons, and affiliates will have to pay $3.9 million to settle a civil law enforcement complaint that alleged the California corporations engaged in false advertising and unfair competition.

“False advertising preys on consumers, who are already facing rising costs, and unfairly disadvantages companies that play by the rules,” Gascón said.

Albertsons sent this statement to Supermarket News regarding the settlement:

“Albertsons Cos. takes this matter seriously and remains committed to ensuring that our customers can shop with confidence. We have taken steps to ensure our price accuracy guarantee is more visible to customers by posting signage at multiple locations at the front of our stores. We have conducted additional comprehensive training for associates to reinforce the importance of price accuracy and customer transparency. Additionally, we have enhanced price tracking systems to better ensure real-time accuracy at stores.

We are committed to ensuring our customers pay the lowest advertised price on a product, and we work quickly to correct any price discrepancies. Any customers who may have been inadvertently charged a higher price are eligible to receive a gift card or the item for free as outlined under our price accuracy guarantee policy which can be found posted in stores.”

The complaint alleged that Albertsons and Vons unlawfully charged customers prices higher than their lowest advertised price. It additionally alleged that Albertsons had issues with inaccurate weights on the labels of their products. Some items sold by weight, like produce, meats, baked goods and other items, had less product in the package than was displayed on the package label, the complaint said. For those items, a grocer may only charge for the product’s actual weight; the packaging is not included.

Under the judgment, signed by Marin County Superior Court Judge Sheila Lichtblau on September 26, both Albertsons and Vons are required to pay $3,213,000 in civil penalties and $749,500 in costs and restitution to cover investigation costs and support future enforcement of consumer protection laws.

The judgment also prohibits the companies from engaging in false or misleading advertising.

The judgment also requires the grocers to implement a Price Accuracy Program, including a Price Accuracy Guarantee 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 as soon as it is discovered.

According to a statement from the Los Angeles district attorney’s office, Albertsons did not admit wrongdoing, but was cooperative in the investigation and has taken steps to correct the violations.

Albertsons Companies, Safeway Inc., and The Vons Companies operate 589 stores in California.