In a significant win for consumer rights, the parent company behind a network of 586 grocery stores has been ordered to fork over nearly $4 million in a lawsuit settlement over misleading advertising practices. According to an announcement from the County of Marin, Albertsons Companies, Inc., its subsidiaries Safeway, Inc., and The Vons Companies, Inc. (collectively ACI) were tasked with false representations regarding the weight of certain products.
The case, which was prosecuted jointly by several counties, including Marin, Alameda, and Los Angeles, to name a few, puts ACI on the hook for civil allegations of cheating consumers with weight discrepancies. Initially uncovered by diligent Weights and Measures inspectors across the state, the investigation revealed that ACI's procedures were inadequate in ensuring product weights' accuracy. "My office is committed to protecting consumers and ensuring they receive truthful and accurate information so they can always make informed purchasing decisions," District Attorney Lori E. Frugoli stated, as per the County of Marin.
As part of the settlement, ACI must stop making misleading statements regarding prices and cannot charge higher than the advertised price. Additionally, the company is barred from selling products by gross weight instead of the accurate net weight, which leaves out packaging. Crucially, they must engage an independent third-party auditor for three years to keep tabs on compliance with these injunction provisions. Marin and six other counties will share the settlement money, with funds earmarked for future consumer protection law enforcement.
Prosecutors also highlighted previous breaches, pointing out past injunctions that ACI ignored. A 2014 injunction required Safeway and Vons to implement a strict price accuracy policy, a measure they flouted, failing to train their employees properly. Under this policy, overcharged customers should have received either the item free or been offered a $5 gift card. Prosecutors said, as per the County of Marin, "Safeway and Vons failed to consistently honor the policy," which continually left consumers paying more than they should have without compensation. For future breaches, proper employee and vendor training on price accuracy has become a cornerstone of ACI's mandate.
