Albertsons settlement overview:
- Who: Albertsons will pay $3.9 million to resolve claims it overcharged customers in California.
- Why: Multiple district attorneys sued the grocery chain over allegations that it misled consumers.
- Where: The Albertsons settlement was filed in a California court.
Albertsons and its affiliates, including Safeway and Vons, have agreed to pay $3.9 million to resolve allegations that they charged customers more than advertised prices on groceries, according to a recent announcement by multiple California district attorneys.
The complaint, filed in Marin County Superior Court, claimed the companies violated state consumer protection laws by engaging in false advertising and unfair competition. The district attorneys announced the settlement Oct. 3.
The lawsuit accused the grocery chain of selling products like meat and produce with misleading packaging labels.
For example, the complaint alleges that some items contained less weight than advertised, violating rules that only allow retailers to charge for the actual weight of a product, excluding packaging.
“False advertising preys on consumers, who are already facing rising costs, and unfairly disadvantages companies that play by the rules,” Los Angeles County District Attorney George Gascón said in a press release. “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.”
Albertsons to introduce new price accuracy program, DAs say
In the settlement, Albertsons and its affiliates agreed to pay $3.2 million in civil penalties and nearly $750,000 in legal costs.
Although they did not admit to any wrongdoing, the companies cooperated with the investigation and have since taken steps to prevent similar issues, the announcement said. Measures include a new price accuracy program that allows customers to claim up to $5 if they’re overcharged.
The program is an incentive to encourage consumers to report false advertising to the store as soon as it is discovered, the district attorneys said. Albertsons Cos., Safeway Inc., and The Vons Cos. operate 589 stores in California.
The Albertsons settlement comes as the company faces other legal challenges. In August, a California man hit Albertsons with a class action lawsuit alleging it falsely advertises its fruit cups products as containing “100% Juice.”
The complaint alleges Albertsons marketed its Signature Select Sliced Peaches and Mandarin Oranges cups as containing “100% juice” or “100% fruit juice,” despite the presence of synthetic preservatives such as ascorbic acid and citric acid.
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