Albertsons to pay nearly $4 million to settle California overcharging lawsuit
Grocery giant Albertsons will pay nearly $4 million to settle a lawsuit accusing it of overcharging customers at hundreds of Albertsons, Safeway and Vons supermarkets it owns across California, prosecutors said Thursday.
The complaint, filed in Marin County and joined by Alameda, Los Angeles, Riverside, San Diego, Sonoma and Ventura counties, accused Albertsons of false advertising and unfair competition for allegedly charging items for more than their lowest advertised price.
Albertsons, the second-largest grocery chain in North America behind Krogers, was also accused of displaying inaccurate weights on the labels of some products. According to the complaint, some items sold by weight such as produce, meats, and baked goods, had less product in the package than was displayed on the package label.
Safeway and Vons stores also failed to abide by a 2014 injunction mandating they implement a price accuracy policy, prosecutors said. The policy requires that customers overcharged for an item either receive it for free or get a $5 gift card, depending on the price of the item.
Boise, Idaho-based Albertsons will 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, prosecutors said. The seven involved counties will split the settlement.
The settlement enjoins Albertsons and its affiliate stores from making any false or misleading statement regarding the price of any item offered for sale; charging an amount greater than the lowest advertised price; unlawfully selling products by gross weight; and selling commodities in less quantity than represented.
Albertsons is also required to hire an independent auditor to determine its compliance for the next three years, as well as institute additional employee training on the price accuracy policy.
'"My office is committed to protecting consumers and ensuring they receive truthful and accurate information so they can always make informed purchasing decisions," said Marin County District Attorney Lori Frugoli in a press release.
"False advertising preys on consumers, who are already facing rising costs, and unfairly disadvantages companies that play by the rules," Los Angeles County District Attorney George Gascón said in a prepared statement. "This kind of corporate conduct is especially egregious when it comes to essential groceries, as Californians rely on accurate advertised prices to budget food for their families."
Albertsons did not admit any wrongdoing and prosecutors said the company was cooperative in the investigation and has taken steps to correct the violations.