Albertsons Class Action Cites COVID-19 Price Gouging

A California woman accuses grocer Albertsons of preying upon consumers during the coronavirus pandemic by increasing prices for essential goods, such as toilet paper, as well as items to protect themselves, like masks and hand sanitizer.

Lead plaintiff Eleisha Redmond points out that price gouging is illegal in many states and Albertsons, as a major American retailer, should have been aware of these restrictions. The plaintiff also claims that Albertsons violated California state law by profiting from desperate consumers during trying times.

“In the midst of the ongoing COVID-19 pandemic, since federal, state, and local governments around the country declared states of emergency and issued mandates requiring citizens to stay home and practice social distancing in order to avoid spreading the highly contagious novel coronavirus, which often causes a severe and sometimes fatal respiratory infection, unscrupulous sellers have taken the opportunity to profit from desperate members of the public by gouging prices of essential items—from basic necessities such as toilet paper to personal protective equipment including face masks, hand sanitizer, and cleaning agents and tools that consumers need to protect themselves,” alleges the Albertsons class action lawsuit.

According to the complaint, California has enacted strict measures to fight profiteering in the event of a public health crisis. In fact, points out the class action lawsuit, this kind of exploitation is a criminal offense under California’s consumer protection laws.

The plaintiff argues that, once a health emergency was declared regarding the coronavirus, retailers were prohibited from making more than a 10 percent markup on certain categories of goods, including:

• Food
• Consumer goods
• Medical supplies
• Emergency supplies
• Other items

For her part, Redmond says she was subjected to price gouging at a Safeway store. The Safeway, which is owned by Albertsons Company Inc., allegedly increased the price of its toilet paper from between $10 and $11 a unit to $18.99 in April 2020.

The class action lawsuit contends that the price increases implemented by Albertsons owned grocery stores was not due to increased costs felt by the retailer.

“Defendant’s price increases were not directly attributable to additional costs imposed on Defendant by the suppliers of the such goods, and Defendant increased prices on many such goods in excess of 10% even when accounting for any additional costs and the markup Defendant customarily applies to the Protected Products,” alleges the complaint.

Instead, the chain deliberately engaged in price gouging to profit off of consumers during a time of crises, says the plaintiff.

“Defendant has the ability to prevent price gouging at its stores during a declared emergency. It has oversight and control over the products sold at its stores, and the prices charged for them,” states the class action lawsuit.

“Defendant…failed to exercise ordinary care and failed to comply with existing standards of care in failing to ensure that food and other necessities were not sold at more than 10% their pre-pandemic prices following the declarations of a state of emergency by local, state, and federal officials due to the COVID-19 pandemic.”

The Albertsons class action lawsuit seeks to represent a nationwide Class of consumers who shopped for food, goods, emergency cleanup items and supplies, or medical supplies whose prices increased by 10 percent after Jan. 30, 2020 at a store owned by Albertsons. The plaintiff also seeks to represent those who shopped at an Albertsons in California for such goods, as well as heating oil, after Feb. 4, 2020.

The class action lawsuit accuses Albertsons of violating California consumer protection law “thousands if not millions” of times over by subjecting residents to high prices during the COVID-19 pandemic. The plaintiff is seeking damages, along with a court order requiring Albertsons to disgorge any profit realized from the alleged price gouging behavior during the coronavirus pandemic.

This is not the first time that Albertsons has faced allegations of price gouging. In April, the grocer and several other companies were hit with a lawsuit claiming that they illegally increased the price of eggs during the pandemic.

The ongoing coronavirus pandemic has led to numerous issues affecting everyday consumers, from allegations of price gouging to fake cures. Top Class Actions has compiled a legal guide to help consumers navigate their rights during this time.

Have you shopped at Albertsons since the COVID-19 pandemic started? Do you think the retailer engaged in price gouging? Tell us what happened to you in the comment box below.

The lead plaintiff and proposed Class Members are represented by Tina Wolfson, Theodore Maya, and Rachel Johnson of Adhoot & Wolfson PC.

The Albertsons Price Gouging Class Action Lawsuit is Redmond v. Albertsons Companies Inc., Case No. 3:20-cv-03692-JSC, in the U.S. District Court for the Northern District of California.

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