Riverside County will receive part of a $3.96 million settlement with the Boise, Idaho-based Albertsons Companies following settlement of a civil suit against the corporation over mislabeled prices that cost customers more money at the checkout counter, it was announced Thursday.
The Riverside County District Attorney’s Office joined prosecutors in Alameda, Los Angeles, Marin, San Diego, Sonoma and Ventura counties in filing the lawsuit, alleging false advertising and unfair competition. The suit was filed and disposed in Marin.
The precise sum of the settlement, which resulted in $3.21 million in civil penalties and $749,500 in restitution, going to Riverside County could not be immediately confirmed.
According to a D.A.’s office statement, an investigation last year of Albertsons and Vons outlets statewide revealed the “grocers unlawfully charged customers prices higher than their lowest advertised price.”
“Beyond the scanner violations, Albertsons also had issues with inaccurate weights on the labels of their products,” the agency stated. “Some items sold by weight, such as produce, meats and baked goods, had less product in the package than was displayed on the label.”
In a statement released to City News Service, the Albertsons Companies said the supermarket chain “takes this matter seriously and remains committed to ensuring that our 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.”
The settlement bars the grocers from any further false advertising and mandates that they implement a “Price Accuracy Program.”
According to Albertsons Companies, the program dovetails with the chain’s goal of “customers paying the lowest advertised price on a product.” One of the highlights of the price accuracy guarantee is that if a customer finds he or she has been overcharged “for any item and the lowest advertised price is over $5,” that customer is entitled to a $5 gift card.
“The program is an incentive to encourage consumers to report false advertising to the store directly as soon as it is discovered,” the D.A.’s office said.