US Foods Chef'Store settles complaint alleging false advertising, overcharging at Northern California stores

Wholesale grocer US Foods Chef'Store will pay $250,000 to settle a complaint accusing it of false advertising and overcharging customers at stores in the Bay Area and Northern California, authorities said Wednesday.

The civil complaint was filed in Sonoma County in a joint action with the district attorneys from San Francisco, Santa Cruz, and Shasta counties. It alleged that Chef'Store charged consumers prices that were not the lowest advertised price or the price listed on the shelf.

The complaint also alleged that the company charged a California Redemption Value or "CRV" on products that were not subject to the fee. 

Without admitting liability, US Foods Chef'Store will pay $251,293.27 after entering into a stipulated judgment Tuesday to settle the civil law enforcement complaint. The company is a restaurant and kitchen supply warehouse chain that also sells products for home cooks. It operates 17 stores in California and has dozens of stores in 13 other states. 

"Our Environmental and Consumer Law Division is committed to ensuring businesses charge consumers their lowest advertised or posted price as required by state law," said Sonoma County District Attorney Carla Rodriguez in a prepared statement. "We are grateful for the work Sonoma County Department of Agriculture's Weights and Measures Division does to protect buyers and sellers by conducting routine inspections to ensure fairness in the marketplace."

"California customers should never be charged more than the lowest amount listed on the advertisement, price tag, or shelf," said San Francisco District Attorney Brooke Jenkins. "I want to thank the weights and measures inspectors at the San Francisco Department of Public Health for their work on this matter. My office won't hesitate to act whenever unlawful price discrepancies are called to our attention."

Prosecutors said US Foods Chef'Store cooperated with the investigation and has since implemented new pricing policies and procedures.