Albertsons, Vons, Safeway settles $3.9 million overcharging lawsuit
Grocery store giant Albertsons, which also operates under Safeway and Vons in California, agreed to pay $3.9 million in fines for overcharging customers for grocery items and falsely advertising the weight of certain products.
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.
“Trusting companies to sell products to consumers that are accurately weighed and priced, especially in today’s economy, is a priority to my office,” Sonoma County District Attorney Carla Rodriguez said in a press release.
Albertsons did not return messages for comment on the settlement.
“What’s posted on the grocery product is what the consumer should pay,” Ventura County District Attorney Nasarenko said. “When grocery corporations mislead consumers with false prices and hidden costs, they should be held accountable and stopped from inflicting financial harm.”
The lawsuit alleged the grocery chain of illegally charging customers higher than advertised or posted prices, according to the DA’s office. Prosecutors also alleged that some pre-packaged items — fruit and vegetables, meat and baked goods — had less product than what was on the label.
The settlement will be split among the seven counties and used to fund future enforcement of consumer protection laws, according to the Marin County district attorney’s office.
In addition, the chain will be required to start a price accuracy program that will reimburse customers up to $5 if they are overcharged for grocery items.
Finally, Albertsons Cos. must hire an independent auditor to ensure the company is not overcharging customers.
Albertsons faces other legal woes
In August of 2023, Albertsons was ordered to pay $3.5 million for selling expired over-the-counter drug products.
Albertsons is also in a federal antitrust lawsuit over a proposed $25 billion effort to merge with Kroger.
If the merger is successful, Kroger would operate more than 4,400 supermarkets and see its annual sales balloon from $150 million to about $208 million, competing more effectively in a grocery industry flooded by non-traditional competitors, it said.
However, the Federal Trade Commission said the merger would reduce competition, lead to higher prices, and impact unionized workers and their bargaining power.
How many grocery stores does Albertsons run in California?
Albertsons Cos. operates 589 Albertsons, Safeway and Vons stores in California.
There are 124 Albertsons locations in California, according to a store directory. In addition, there are 183 Vons, 28 Pavilions and 242 Safeway stores in the state.
How many grocery stores does Kroger run in California?
Californians can shop at 183 Ralphs in the state, 90 Food 4 Less stores and 20 Foods Co, according to the retailers’ store directories.
To quell concerns regarding maintaining competition, Kroger and Albertsons recently announced the sale of 579 stores to C&S Wholesale Grocers.
That included 63 stores in California, many in Southern California, operating under the Vons, Pavilions and Albertsons banners.
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