Albertsons to pay $3.9 million over allegations it overcharged, lied about weight of groceries
Grocery titan Albertsons will pay $3.9 million to resolve a civil law enforcement complaint alleging that it ripped off customers at hundreds of its Vons, Safeway and Albertsons stores in California, authorities said Thursday.
According to the complaint, groceries sold by Albertsons Cos. — including produce, meats, baked goods and other items — had less product in the package than indicated on the label. The company also is accused of charging customers prices higher than its lowest advertised price.
“False advertising preys on consumers, who are already facing rising costs, and unfairly disadvantages companies that play by the rules,†L.A. County Dist. Atty. George Gascón said. “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.â€
The case was filed in Marin County Superior Court in partnership with the consumer protection units of the district attorney’s offices of Los Angeles, Marin, Alameda, Sonoma, Riverside, San Diego and Ventura counties.
The settlement will be divided among the seven counties and used to support future enforcement of consumer protection laws, according to the Marin County district attorney’s office. None of the money will be paid back to consumers.
The fine comes just over a year after the same company was ordered to pay $3.5 million for selling expired over-the-counter drug products. The company is also currently fighting a federal antitrust lawsuit that seeks to block its planned merger with grocery giant Kroger Inc.
Kroger’s $24.6-billion acquisition of Albertsons is the largest proposed supermarket merger in U.S. history. The FTC sues, alleging the deal is anti-competitive.
Albertsons Cos. operates 589 Albertsons, Safeway and Vons stores in California. The company did not admit wrongdoing. It cooperated with the investigation and has taken steps to correct the violations, according to the L.A. County district atttorney’s office.
In a statement on the settlement, the company said it takes the matter seriously and is committed to ensuring its 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,†the company stated. “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.â€
Prosecutors in the lawsuit alleged that the company failed to implement a price accuracy policy ordered by a court in 2014.
The policy requires that customers who are overcharged for an item either receive the item for free or receive a $5 gift card, depending on which option is worth more. It is designed to encourage customers to immediately report false advertising.
Under the judgment reached Thursday, the grocery giant must implement this policy and ensure staff are properly trained to place accurate weight labels on products.
The serial overcharging was discovered through inspections by Marin County’s Department of Agriculture, Division of Weights and Measures and its counterparts across the state.
“We could not have achieved this result without the outstanding work of our Weights and Measures inspectors as well as vigilant consumers,†said Deputy Dist. Atty. Andres Perez, who prosecuted the case for Marin County.
For the next three years, Albertsons Cos. is required to hire an independent auditor to ensure it is complying with the terms of the judgment.
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