Alberstons, Safeway, Vons to pay $3.9M over price complaints
- Three grocery suppliers will pay a nearly $4M settlement
- The ruling stems from a civil case alleging grocers overcharged shoppers
- It comes as federal officials attempt to block a massive grocery merger
FILE – An Albertsons grocery store is seen in Boise, Idaho, on Thursday, Oct. 14, 2022. A bipartisan group of attorneys general is asking Albertsons to delay a $4 billion payout to its shareholders until they can complete a review of Kroger’s planned acquisition of the grocery chain. (Sarah A. Miller/Idaho Statesman via AP, File)
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(NewsNation) — Safeway, Albertsons and Vons will pay nearly $4 million to settle a lawsuit alleging the grocers used false advertising and overcharged California customers.
The Alameda County District Attorney’s Office in California announced the judgment Thursday. The settlement also requires the grocery chains to introduce a “Price Accuracy Program” and steer clear of certain advertising practices.
Albertsons Companies, Safeway Inc. and The Vons Companies operate 589 stores in California. They were accused of charging customers more than their lowest advertised price and using inaccurate weights on their product labels.
Some items sold by weight contained less product than was displayed on the label. In those cases, a grocer can only charge for the product’s actual weight — not including the packaging.
The accuracy program allows customers to receive up to $5 if a store overcharges them. The judgment also includes an injunction that bars the grocery chains from using false or misleading advertising and bans fourteen different unfair practices, including advertising short-weight products to failing to disclose exclusions in its “Just for U” or “Club Card” programs, according to the release.
The Federal Trade Commission has been trying to temporarily prevent a proposed merger between Kroger and Albertsons. If it’s successful, the deal would be the largest supermarket merger in U.S. history.
The grocers have tried to rally support for the proposal by saying it would protect consumer choice and foster healthier competition with stores like Walmart, Costco and Amazon.
The federal government, however, says the deal only serves shareholders and pushes out local competition.
