(KRON) – Safeway Inc. will pay nearly $4 million to settle a civil complaint for false advertising and unfair competition arising from overcharging customers, Alameda County District Attorney Pamela Price announced on Thursday.
According to the complaint, Safeway scanners charged customers higher prices than the advertised price upon scanning a product at check out. Beyond the scanner violations, Safeway also had issues with inaccurate weights on the labels of its products.
Produce sold by weight – such as produce, meats, and baked goods – “had less product in the package than was displayed on the package label,” the complaint said. “For those items, a grocer may only charge for the product’s actual weight, the packaging is not included in the overall weight.”
“At a time when the price of groceries has skyrocketed, and the residents of Alameda County are struggling to put food on their tables, my office takes these allegations of false advertising and overcharging customers very seriously,” DA Price said.
In 2019, inspectors from the DA’s office conducted inspections at two Safeway stores—one in Castro Valley and the other in Dublin. Evidence found “labels with no net weight for dozens of items being sold,” which, according to the DA’s office, allows grocers to engage in misleading advertising.
Going forward, Safeway will implement a “Price Accuracy Program,” which allows customers to be compensated up to $5 if they were overcharged for their purchase.
Safeway also received an injunction that prohibits it from 14 different unfair practices, from preventing the grocer from advertising shortweight products to failing to disclose exclusions in its “Just for U” or “Club Card” program.
The judgment requires Safeway and affiliates to pay $3,213,000 in civil penalties and about $650,000 to cover investigation costs and “supporting future enforcement laws,” according to the complaint.
This settlement is against the Albertsons, Safeway, and Vons companies, which jointly operate a little under 600 stores across the state. There are approximately 28 Safeway stores across Alameda County.
The Alameda Co. DA joined the suit with the district attorneys of Marin, Los Angeles, Riverside, San Diego, Sonoma, and Ventura counties.
